Given that monopoly firms do not have to compete with other firms, the outcome in a monopoly market is best described as:
A)not in the best interest of society
B)where excessive pollution occurs
C)efficient, but not equitable
D)all of the above

Question

Quizplus · Accepted Answer

Monopoly firms have the ability to set high prices and restrict output, resulting in reduced consumer surplus and less overall economic welfare. This outcome is not in the best interest of society. The other options, excessive pollution and efficiency without equity, may or may not occur in a monopoly market, but are not necessarily defining characteristics.

Given That Monopoly Firms Do Not Have to Compete with Other