Which of the following is a negative outcome of markets where sellers have market power?
A)Higher prices
B)An inefficiently large output
C)Smaller economic profits
D)Lower costs

Question

Quizplus · Accepted Answer

When sellers have market power, they can charge higher prices because they face less competition. This leads to higher prices for consumers, which is a negative outcome of such markets. An inefficiently large output, smaller economic profits, and lower costs are not necessarily negative outcomes in markets where sellers have market power.

Which of the Following Is a Negative Outcome of Markets