The degree of market failure caused by monopoly:

Question

Quizplus · Accepted Answer

While monopoly can cause market failure, the political failure associated with reducing monopoly problems can often be greater. This is because politicians may not have enough information to effectively regulate the industry, may be influenced by lobbyist pressure, or may not have the political will to enact necessary reforms. Additionally, using marginal-cost pricing may not always be feasible or effective in addressing the problems caused by monopoly.

The Degree of Market Failure Caused by Monopoly