An important difference between competitive and monopoly markets is that in a competitive market:
A)no gains from trade are realized while all are in a monopoly.
B)all gains from trade are realized while they are not in a monopoly.
C)some gains from trade are realized while all are in a monopoly.
D)some gains from trade are realized while they are not in a monopoly.

Question

Quizplus · Accepted Answer

In a competitive market, many sellers and buyers interact, leading to an efficient allocation of resources where all gains from trade are realized. In contrast, a monopoly restricts output to raise prices, resulting in some potential gains from trade not being realized.

An Important Difference Between Competitive and Monopoly Markets Is That