If Both a Monopoly and a Competitive Market with the Same

question 116

Multiple Choice

If both a monopoly and a competitive market with the same marginal cost would produce a quantity that is greater than the social optimum in a market because of externalities,then

• A) welfare is greater under monopoly.
• B) welfare is greater under competition.
• C) welfare is the same for both market structures.
• D) the social optimum must be zero.