What are the general welfare benefits for a country with a monopoly overpricing goods joining a customs union.

Question

Please cna you be thorough and provide real life examples. It would be much appreciated Colin

Answer 1

Since monopoly overprices a good, when joined a customs union, society can buy any substitute for a lower price. Thus consumers gain in surplus whereas the monopolist suffers from a loss in producer surplus.
For example, a monopolist in Bulgaria may experience losses due to Bulgaria's membership to EU, which is a customs union.