Form society's point of view, society would be better off if a monopolist ?
Correct answer: C. produced more and charged a lower price
- A. produced less and charged a higher price
- B. produced more and charged a higher price
- C. produced more and charged a lower price
- D. produced less and charged a lower price.
Explanation
A monopolist restricts output and charges more than would prevail under competition. Society gains when output expands and price falls toward the competitive level.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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