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.
b
You might also like to view...
The airline industry routinely engages in price discrimination across time
Indicate whether the statement is true or false
An economic boom in China is likely to lead to a(n):
a. decrease in U.S. exports and U.S. aggregate demand. b. increase in U.S. exports and U.S. aggregate demand. c. decrease in U.S. imports and U.S. aggregate demand. d. increase in U.S. imports and U.S. aggregate demand.