The creation of a monopoly results in gains to
A)producers at no expense to consumers.
B)consumers at no expense to producers.
C)producers at the expense of consumers.
D)consumers at the expense of producers.
E)producers and consumers at the expense of the government.

Question

Quizplus · Accepted Answer

When a monopoly is created, the sole producer gains the power to raise prices since there are no other competitors in the market. This results in higher profits for the producer at the expense of consumers who will have to pay more for the product. Therefore, the creation of a monopoly results in gains to producers at the expense of consumers.

The Creation of a Monopoly Results in Gains to