One possible benefit of a monopoly is:
A)a more efficient allocation of resources;only one firm is needed to supply quantity demanded.
B)greater incentives for research due to long-run positive economic profits.
C)the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor.
D)goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.

Question

Quizplus · Accepted Answer

A monopoly may have greater incentives for research and development because they can earn long-run economic profits, which can be used to fund innovative projects. In perfect competition, firms do not have enough market power to earn such profits and may not have the necessary resources to invest in research and development. However, this benefit must be weighed against the potential drawbacks of a monopoly, such as higher prices and reduced output.

One Possible Benefit of a Monopoly Is