The power of monopoly may lead to:
A) setting the price of their output.
B) graft and corruption.
C) a deadweight loss suffered by society.
D) all of the above.

Question

Quizplus · Accepted Answer

Monopoly power allows a company to set the price of their output without competition, which can result in charging higher prices than in a competitive market. This can lead to a deadweight loss suffered by society due to less efficient allocation of resources. Additionally, the lack of competition can create opportunities for graft and corruption by the company. Therefore, all of the above choices are potential consequences of monopoly power.

The Power of Monopoly May Lead To