Monitoring a monopoly to keep it efficient would itself be efficient if the extra profit achieved by:
A) raising production costs is less than the costs of monitoring.
B) raising production costs exceeds the costs of monitoring.
C) reducing production costs is less than the costs of monitoring.
D) reducing production costs exceeds the costs of monitoring.

Question

Quizplus · Accepted Answer

Monitoring a monopoly is efficient if the reduction in production costs achieved by monitoring exceeds the costs of monitoring, as this would result in a net gain in efficiency.

Monitoring a Monopoly to Keep It Efficient Would Itself Be