Question

Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly a. is often not in the best interest of society. b. maximizes total economic well-being. c. is efficient. d. benefits consumers more so than the producer.

Answer 1

Answer:

a. is often not in the best interest of society. 

Explanation:

A monopoly is when there is a single firm operating in an industry. This is usually so because of high barriers to entry of other firms.

Because a monopoly has only one firm in the industry, the firm sets prices to maximise profit. The firm earns economic profit in the short and long run.

The monopoly benefits the producer more than consumers. It is often inefficient and fails to maximise total welfare .

Because of these inefficiencies, government usually steps in to regulate the activities of a monopoly.

I hope my answer helps you.