Does the category Monoid of monoids have finite coproducts?
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Yes. More generally, any category of algebras (in the sense of universal algebra), such as groups, rings, vector space, Lie algebras, ..., has all (small) limits and colimits. See for instance p.210 (end of section IX.1) of Mac Lane's book Categories for the Working Mathematician. Explicitly, the initial monoid ("0fold coproduct of monoids") is the oneelement monoid. The coproduct $A * B$ of two monoids $A, B$ is constructed similarly to the coproduct of two groups (often called their "free product"). That is, it's the free monoid generated by all the elements of $A$ together with all the elements of $B$, quotiented out by all the relations that hold in $A$ and all the relations that hold in $B$. 

