Which of the following statements concerning monopoly is NOT true?
A) A market may be monopolistic because there are some legal barriers.
B) A monopoly has market power.
C) A monopoly is always undesirable.
D) There is some deadweight loss in a monopolistic market.

Question

Quizplus · Accepted Answer

While some may argue that a monopoly is always negative, it is not a universally accepted view. Monopolies may result in increased efficiency and higher quality products if the firm is able to take advantage of economies of scale. However, they can also lead to higher prices and reduced consumer welfare, which is generally seen as a negative outcome.

Which of the Following Statements Concerning Monopoly Is NOT True