Perhaps the single greatest criticism economists have of monopolies is that monopolies tend to
A) oppose technological development.
B) create misallocation of resources.
C) make monopolists rich.
D) produce goods and services that are of questionable social benefit.
E) require government regulation in order to be efficient.

Question

Quizplus · Accepted Answer

Monopolies have the power to control prices and output, which often leads to a misallocation of resources. This is because monopolies tend to produce less quantity at a higher price, leading to a deadweight loss in society. This results in a less efficient market outcome, with potential negative effects on economic growth and social welfare.

Perhaps the Single Greatest Criticism Economists Have of Monopolies Is