According to standard economic theory?

According to standard economic theory, monopolies..

a. should be illegal
b. generally charge a higher price then firms in competitive industries.
c. generally sell less of their products compared to competitive markets.
d. are always bad for society
e. all of the above.
f. choices b and c

I know its choice B, but is it choice C also?
Thanks

Anonymous2012-05-08T17:40:02Z

Favorite Answer

I would go for F. You cannot choose B without C because it charges the higher price by selling less. A and E are not right. There is natural monopolist who can decrease cost by increasing output.There are good monopolists who are monitored by the government to be good such as in utility sector.

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