If there is a sole producer of a good,and he faces no threat of competition,it is likely that:

Question

Quizplus · Accepted Answer

If there is a sole producer of a good, it means that there is no competition in the market, which gives the producer an excessive market power to act inefficiently and charge an inefficiently high price. Government intervention could be necessary to increase total surplus by regulating the price and promoting healthy competition in the market. Therefore, all three options are true.

If There Is a Sole Producer of a Good,and He