Monopolies in successive markets result in
A) a double markup for consumers.
B) more output than if the input market is competitive.
C) a lower output price than if the input market is competitive.
D) All of the above.

Question

Quizplus · Accepted Answer

Monopolies in successive markets result in a double markup for consumers, meaning that they face higher prices than they would in a competitive market. The monopolies in these markets can charge a higher price because they are the only supplier of the goods or services, and consumers have no alternative but to buy from them. This leads to a reduction in output and welfare loss, as consumers pay more than they otherwise would in a competitive market. While monopolies can lead to greater output in the market in which they operate, the reduction in output in the input market results in an overall reduction in output.

Monopolies in Successive Markets Result in