Economists object to monopoly because
A)monopoly profits go to the rich.
B)monopolies overproduce to maximize profits.
C)monopolies are usually polluters.
D)monopolists keep output below efficient levels.

Question

Quizplus · Accepted Answer

Economists object to monopoly because monopolists keep output below efficient levels. Monopolies have the ability to restrict output and raise prices above the level that would prevail under competitive conditions. This results in an inefficient allocation of resources and deadweight loss to society.

Economists Object to Monopoly Because