In which of the following ways can the government increase social welfare in an unregulated monopoly?

Question

In which of the following ways can the government increase social welfare in an unregulated monopoly?​

Quizplus · Accepted Answer

In an unregulated monopoly, the monopolist has the power to set the price and quantity of output to maximize their profits. However, this can result in high prices and restricted output, which can result in a loss of social welfare. To increase social welfare, the government can force the monopolist to lower the price and expand output. This will lead to an increase in consumer surplus and overall social welfare while still allowing the monopolist to earn a profit. The other choices (A, C, D, and E) either do not address the issue of social welfare or could have negative consequences.

In Which of the Following Ways Can the Government Increase