Which of the following measures may eliminate some of the inefficiency that results from monopoly pricing?
A)the government can regulate the monopoly
B)the monopolist can price discriminate
C)the monopoly can be publicly owned
D)all of the above

Question

Quizplus · Accepted Answer

All of the above measures can eliminate some of the inefficiency that results from monopoly pricing. Government regulation can ensure that the monopoly price is not too high and that the level of output is not too low. Price discrimination allows the monopolist to charge different prices to different customers depending on their willingness to pay, which can increase overall profits and reduce inefficiency. Public ownership of the monopoly can also ensure that it is operated in the public interest, rather than solely for the benefit of private owners.

Which of the Following Measures May Eliminate Some of the Inefficiency