A statement that best reflects an evaluation of monopoly firms is that:
A) they are economically inefficient.
B) they have little or no market power.
C) consumers are given more choices, lower costs, and higher quality.
D) competition should replace all monopolies.

Question

Quizplus · Accepted Answer

Monopoly firms are economically inefficient because they can restrict output and raise prices, leading to a loss of consumer and producer surplus compared to competitive markets.

A Statement That Best Reflects an Evaluation of Monopoly Firms