A monopoly is good for consumers when:

Question

Quizplus · Accepted Answer

A natural monopoly exists when it is more efficient to have only one firm providing a particular good or service, such as electricity or water. In such cases, having multiple firms would result in redundant infrastructure and higher costs for consumers. Therefore, a monopoly in this situation would be beneficial for consumers as it ensures efficient production and potentially lower prices. However, in all other cases, monopolies tend to lead to higher prices, reduced innovation, and decreased consumer surplus.

A Monopoly Is Good for Consumers When