An important benefit of private ownership of a monopoly is that a private monopoly has more incentive to:
A)bargain for much lower wages for its workers
B)charge a price that is consistent with that of a benevolent social planner
C)lower its costs so that it can earn more profit
D)price its good according to the intersection of marginal cost and average revenue

Question

Quizplus · Accepted Answer

Private monopolies have the incentive to lower their costs because the lower the costs, the higher the profit. In contrast, a public monopoly does not face the same profit motive and may not have the same level of efficiency as a private monopoly.

An Important Benefit of Private Ownership of a Monopoly Is