Which of the following is NOT a reason why a monopoly might be regulated?
A) To reduce the inefficiency associated with profits
B) To limit prices in important markets with economic or political consequences
C) To deal with the negative consequences of government-created monopolies
D) To ensure that a good is produced at least cost

Question

Quizplus · Accepted Answer

Monopolies are often regulated to address issues such as limiting prices, dealing with government-created monopolies, and ensuring goods are produced at least cost. Reducing the inefficiency associated with profits is not typically a reason for regulation, as profits in themselves are not seen as inefficient but rather a potential outcome of monopoly power.

Which of the Following Is NOT a Reason Why a Monopoly