The True Cost of Monopoly Power to Society Is Attributable

question 7

Multiple Choice

The true cost of monopoly power to society is attributable to

• A) the higher price that consumers must pay.
• B) the reduction in output by the monopolist.
• C) the excess profits enjoyed by the monopolist.
• D) the failure of other firms to enter the industry.

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Definitions:

Sociologist

A social scientist who studies the development, structure, and functioning of human society and the social problems it faces.

Free Markets

Economic systems in which prices for goods and services are determined by the open market and consumers, in the absence of government intervention.

Regulated Markets

Markets that are subject to oversight and control by governmental or other authoritative entities to ensure fairness, competition, and compliance with laws.