A statement that best reflects an evaluation of monopoly firms is that:

Question

Quizplus · Accepted Answer

Monopoly firms have significant market power, which can lead to higher prices, lower quantities, and limited consumer choice. Regulation can be a solution to prevent abuse of market power and ensure that consumers are protected. Therefore, option D is the most appropriate statement. Options A and B are incorrect because monopoly firms can be inefficient, and they typically have significant market power. Option C is also incorrect because monopolies do not typically result in more choices or lower costs for consumers.

A Statement That Best Reflects an Evaluation of Monopoly Firms