One Argument for Allowing Monopolies to Exist Is

question 31

Multiple Choice

One argument for allowing monopolies to exist is:

• A)it would be inefficient to break up natural monopolies into smaller units.
• B)monopolies lead to net economic benefits as a rule.
• C)the free market acts as a more effective regulator than the government.
• D)they allow for greater standardization of products and improved quality control.

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Definitions:

Normative Questions

Questions that address what should be, focusing on value judgments and opinions rather than empirical facts.

Value Judgments

Assessments or opinions based on individual beliefs about what is important or desirable, often influencing decisions and policies.

Positive Economic

Refers to an approach or analysis based on factual data and observable outcomes, without subjective judgments or opinions influencing the conclusions.

Economic Theories

A collection of principles and models that explain how economies function, how economic agents interact, and how economic variables are determined.