When the number of seller are few and consumers are large and scattered then the producer have more bargaining power while consumers have less.In other words it can also be said that the producers can determine the price While consumer have to take the given price. This would lead to exploitation of the consumers as producers would have the power to charge high price for the commodity having less production.Sometimes producers produce lesser amount of products then what it is socially optimal which bring inefficiency in market. Here the consumer surplus is also low while producer surplus is high. Thus, it can be said that the functioning in such markets is not fair.

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