Question

without regulations, monopolists will produce at an output level where marginal benefit is greater than marginal social cost. true or false

Answer 1

The answer is true. Without regulations, monopolists will produce at an output level where marginal benefit is greater than marginal social cost.

These problems are only the surface level of the inefficiency problem for monopolies; there are further incentives for efficiency over longer time horizons. There are compensating incentives in this situation. On the one hand, businesses might pursue novel ideas and new intellectual property in an effort to gain market monopolies and maximize profits—at least for a few years, until rivals catch up. In this manner, the strains of competition on businesses may lead to the emergence of monopolies. A monopoly, however, that does not have to worry about competition can simply produce the same old items in the same old ways—while still ringing up a solid rate of profit—once a barrier to entry is put in place.

Learn more about monopolists here:

brainly.com/question/14055453

#SPJ4