Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often efficient, but not equitable.

Question

Quizplus · Accepted Answer

Monopoly outcomes are often neither efficient nor equitable because monopolies can restrict output to raise prices, leading to a loss of allocative efficiency and creating a welfare loss to society, while also potentially distributing resources and income in a less equitable manner.

Because Monopoly Firms Do Not Have to Compete with Other