Why may private ownership of a monopoly benefit society
A)The monopoly will have an incentive to charge a price that is consistent with that of a benevolent social planner.
B)The monopoly will not have an incentive to charge a price that prevents some people from buying.
C)The monopoly will have an incentive to price its good according to the intersection of marginal cost and average revenue.
D)The monopoly will have an incentive to lower its costs so that it can earn more profit.

Question

Quizplus · Accepted Answer

Private ownership of a monopoly incentivizes the firm to lower costs and increase efficiency in order to earn more profit. This can lead to technological advancements and innovation. Ultimately, lower costs can be passed on to consumers through lower prices or increased quality of goods/services.

Why May Private Ownership of a Monopoly Benefit Society