Compared with perfect competition,monopoly produces a net welfare gain for society.

Question

Quizplus · Accepted Answer

Monopoly can result in higher prices and lower output levels compared to perfect competition, which can lead to a net welfare loss for society. Monopolies also have less incentive to innovate and improve their products. However, there are some cases where monopolies can benefit society through economies of scale and the ability to invest in research and development. Overall, the effect of monopoly on social welfare depends on various factors and cannot be generalized as a net gain or loss.

Compared with Perfect Competition,monopoly Produces a Net Welfare Gain for Society