How does monopoly product quality compare to the quality a social planner would choose?
A)The monopolist targets the marginal consumer's valuation of quality,whereas the social planner targets the average consumer's.This leads the monopolist to make inefficiently low-quality products.
B)The monopolist targets the marginal consumer's valuation of quality,whereas the social planner targets the average consumer's.This leads the monopolist to make inefficiently high-quality products.
C)There is no difference due to a standard neutrality argument.
D)None of the above.

Question

​How does monopoly product quality compare to the quality a social planner would choose?
A)​The monopolist targets the marginal consumer's valuation of quality,whereas the social planner targets the average consumer's.This leads the monopolist to make inefficiently low-quality products.
B)​The monopolist targets the marginal consumer's valuation of quality,whereas the social planner targets the average consumer's.This leads the monopolist to make inefficiently high-quality products.
C)​There is no difference due to a standard neutrality argument.
D)​None of the above.

Quizplus · Accepted Answer

The Answer of ​How does monopoly product quality compare to the quality a social planner would choose?
A)​The monopolist targets the marginal consumer's valuation of quality,whereas the social planner targets the average consumer's.This leads the monopolist to make inefficiently low-quality products.
B)​The monopolist targets the marginal consumer's valuation of quality,whereas the social planner targets the average consumer's.This leads the monopolist to make inefficiently high-quality products.
C)​There is no difference due to a standard neutrality argument.
D)​None of the above.

​How Does Monopoly Product Quality Compare to the Quality a Social

How Does Monopoly Product Quality Compare to the Quality a Social