A perfectly competitive market
A)may not be in the best interests of society, whereas a monopoly market promotes general economic well-being
B)promotes general economic well-being, whereas a monopoly market may not be in the best interests of society.
C)and a monopoly market are equally likely to promote general economic well-being.
D)is less likely to promote general economic well-being than a monopoly market.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are forced to produce at the lowest cost possible to stay competitive, leading to lower prices for consumers and efficient allocation of resources. This promotes general economic well-being. On the other hand, a monopoly market can lead to higher prices, lower output, and less efficiency. Therefore, a perfectly competitive market promotes general economic well-being, while a monopoly market may not be in the best interests of society.

A Perfectly Competitive Market