Private ownership of a monopoly may benefit society because the monopoly will have an incentive to
A)charge a price that is consistent with that of a benevolent social planner.
B)charge a price that prevents some people from buying.
C)price its good according to the intersection of marginal cost and average revenue.
D)lower its costs to earn a higher profit.

Question

Quizplus · Accepted Answer

A private monopoly has an incentive to lower its costs to maximize profits, which can lead to more efficient production and potentially lower prices for consumers.

Private Ownership of a Monopoly May Benefit Society Because the Monopoly