When would society be better off?
A)if output is more than the monopolist's profit-maximizing quantity
B)if output is less than the monopolist's profit-maximizing quantity
C)if output is the same as the monopolist's profit-maximizing quantity
D)if the monopolist made economic profit only
E)if the monopolist reduced output

Question

Quizplus · Accepted Answer

Society would be better off if output is more than the monopolist's profit-maximizing quantity because this would likely result in lower prices and greater availability of goods or services for consumers, improving consumer surplus and overall welfare. Monopolists typically restrict output to raise prices and maximize their profits, which can lead to inefficiencies and a loss of welfare in the economy compared to more competitive market outcomes.

When Would Society Be Better Off