Given that monopoly firms do not have to compete with other firms, the outcome in a monopoly market is best described as:

Question

Quizplus · Accepted Answer

In a monopoly market, the lack of competition allows the firm to charge higher prices and produce less output than would occur in a competitive market. This results in a reduction in consumer surplus and an increase in producer surplus, which means that the outcome is not in the best interest of society. Hence, choice A is correct.

Given That Monopoly Firms Do Not Have to Compete with Other