The argument that supports monopolies' role in an economy is that:
A) they distribute income from firms to consumers.
B) they save valuable resources by producing less output than in perfect competition.
C) they charge a price in excess of the marginal cost.
D) they can use their profits to invest in research and development, increasing technological change.
E) there are no arguments that support monopolies.
Correct Answer:
Verified
Q109: A monopolist is always earning economic profits
Q114: Exhibit 8-7 Q115: Monopolies can charge any price they like Q115: Exhibit 8-7 Q117: A monopoly can successfully price-discriminate as long Q118: A monopolist maximises total revenue. Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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