A statement that best reflects an evaluation of monopoly firms is that:
A) they are economically efficient.
B) they have little or no market power.
C) consumers are given more choices, lower costs, and higher quality.
D) competition should not replace all monopolies.

Question

Quizplus · Accepted Answer

While monopoly firms may restrict competition and have the potential to abuse their market power, there are certain situations where they may be beneficial. For example, in industries that require large capital investments, such as utility companies or infrastructure providers, monopolies may be more efficient than having multiple firms competing for the same market. Thus, while competition should generally be encouraged, it may not always be desirable to replace all monopolies.

A Statement That Best Reflects an Evaluation of Monopoly Firms