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.

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Definitions:

Itinerant Seller

A seller who moves from place to place to sell goods or services, often without a fixed retail location.

Fixed Place of Business

A specific location where a company conducts its operations and business activities on a regular basis.

Legislation

Laws that have been enacted by a legislative body, such as a parliament or congress.

Physical Threats

Explicit or implicit actions suggesting the intent to cause bodily harm to another person.