Splitting up a monopoly is often justified on the grounds that
A)consumers prefer dealing with small firms.
B)small firms have lower costs.
C)competition is inherently efficient.
D)small firms produce higher quality products.

Question

Quizplus · Accepted Answer

Splitting up a monopoly is often justified on the grounds that competition is inherently efficient. Monopolies can lead to high prices and decreased quantity of output as they have no competitors to keep them in check. Introducing more firms into the market can increase competition, lead to lower prices, and increased quality of products.

Splitting Up a Monopoly Is Often Justified on the Grounds