The Gains to Monopolists from Exercising Market Power

question 95

Multiple Choice

The gains to monopolists from exercising market power

• A) exceed the losses to consumers in monopoly markets, resulting in a net gain to society.
• B) equal the losses to consumers in monopoly markets, resulting in no net change for society.
• C) are less than the losses to consumers in monopoly markets, resulting in a net loss to society.
• D) create smaller deadweight losses than occur in purely competitive industries.

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Definitions:

Illegal

Forbidden by law or statute, violating legal statutes or rules.

Express Trust

A legal agreement created intentionally by a grantor, designating a trustee to manage assets for the benefit of beneficiaries.

Grantor

An individual or entity that transfers property rights to another person or entity.

Constructive Trusts

Legal arrangements treated by a court as if they are actual trusts, when someone has wrongfully obtained or withheld property that rightfully should belong to another.