Among the arguments against monopoly is that
A) compared to a perfectly competitive industry, a monopolist produces too much of a good.
B) a monopolist charges a price that is less than the cost to society of producing the extra unit.
C) a monopolist redistributes income in its favor by charging a price above marginal cost.
D) as monopoly profits disappear, a monopolist must raise price to increase sales.
E) the socially optimal output rate is frequently too high for a single firm to produce at minimum unit costs.

Question

Quizplus · Accepted Answer

A monopolist has the ability to charge a price above the marginal cost of production, which leads to a redistributing income in its favor. This is considered to be one of the main arguments against monopoly.

Among the Arguments Against Monopoly Is That