The Advantages of Maintaining Monopolies

question 45

Multiple Choice

The advantages of maintaining monopolies:

• A)always outweighs the total welfare costs due to lost surplus.
• B)sometimes outweighs the total welfare costs due to lost surplus.
• C)never outweighs the total welfare costs due to lost surplus.
• D)This is a normative argument that has no right answer.

---

Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets.

Political Engagement

The active participation of individuals in political activities or processes to influence public policy or decision-making.

Public Good

An item or service delivered at no cost to all individuals in a society, facilitated by either public authorities or a charitable organization or person.

Rival in Consumption

A characteristic of a good where its consumption by one person reduces its availability for another person.