Empirical estimates indicate that the annual welfare cost of monopoly in the United States
A)ranges from less than 1 percent to 5 percent of national income
B)ranges from 10 percent to 20 percent of national income
C)is approximately 10 percent of national income
D)is approximately $1 billion
E)is approximately $1 trillion

Question

Quizplus · Accepted Answer

Empirical estimates suggest that the annual welfare cost of monopoly in the United States ranges from less than 1 percent to 5 percent of national income. Neither choice B, C, D nor E are accurate as they give higher estimates than what is suggested by empirical evidence.

Empirical Estimates Indicate That the Annual Welfare Cost of Monopoly