Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly
A)is often not in the best interest of society.
B)maximizes total economic well-being.
C)is efficient.
D)benefits consumers more so than the producer.

Question

Quizplus · Accepted Answer

Monopoly firms have the power to set prices above the marginal cost of production and restrict output, leading to a lack of competition and potentially harming consumer welfare. Monopolies can also stifle innovation and new entrants into the market, which can harm overall economic efficiency and growth. Therefore, the outcome in a market with a monopoly is often not in the best interest of society.

Because Monopoly Firms Do Not Have to Compete with Other