A statement that best reflects an evaluation of monopoly firms is that:
A) they have a great deal of market power.
B) they are economically efficient.
C) consumers are given more choices, lower costs, and higher quality.
D) competition should replace all monopolies.

Question

Quizplus · Accepted Answer

Monopoly firms have a significant market power, as they are the sole provider of a certain product or service, allowing them to control prices and output to their advantage. However, this often results in reduced competition, which can lead to higher prices and reduced output, resulting in a loss of consumer welfare.

A Statement That Best Reflects an Evaluation of Monopoly Firms