Question on: SS2 Economics - Price And Quantity Determination Under Monopoly

What is the consequence of the monopoly's pricing and quantity determination?

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A

Inefficiencies in the market and a reduction in overall economic welfare

B

Increased competition and lower profits

C

Lower prices for consumers but higher costs for the monopoly

D

Increased innovation and product development

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Correct Option: A

(Inefficiencies in the market and a reduction in overall economic welfare. To s is because the price of the product or service is generally higher than it would be under perfect competition)

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