Question

What positive roles can a Monopolist play under the influence of
Islamic spirit?

4
b) Can monopoly bring desirable solutions in societies having an
inequitable distribution of income? Explain.

How does ‘Expected Desirable Income Hypothesis’ shape the
consumption pattern of Islamic society?

Answer 1

Islamic spirit is subjected to human welfare in each aspect of life weither in business or non business field .

Monopolist is a company or group of people or indivisual who have control over market to decide price and quantity quality of production As level of competition is very less in the market.

Generally monopoly decide higher prices of their gooda and service and focus more and more on profit making.many time vulnerable groupsof society are most affected by these monopoly pricing behavior.

But when monopolist devoted to islamic principles of human welfare existance with business then they keep their price low as they are also in benifit as well as societies people.

Under monopolist of Islam principles they avoid corrupt practices ,which oftenly done by monopolist like black market , stockist behavior and low quality of goods. Thus monopolist under Islamic sprit always taking consider welfare of society as well.

Generally monopoly increase income inequality as poor or low income households have to pay more in compared to rich as monopolist set higher price and thus increase income inequality but by using Islamic principles theythey can help poor more as setting lower price and thus may be help ful.

According to the Hypothesis, when the income of the people increases, then their expenditure ie consumption also increases, but is less than the income i.e. when the income of the people increases, they want to spend more and more.If Islamic society income increases, most of the islamic country poor due to it, there will be increase in poverty, employment increase and other facilities of the people, thereby improving their standard of living.