Monopoly can lead to a perverse redistribution of income if the owners of the monopoly are wealthier than buyers.

Question

Quizplus · Accepted Answer

If the owners of a monopoly are wealthier than the buyers, they can set higher prices without losing customers. This results in higher profits for the owners, but also means that buyers will have less money to spend on other goods and services, leading to a redistribution of income towards the owners of the monopoly. This is considered a perverse outcome, as it can lead to increased inequality and a reduction in overall economic welfare.

Monopoly Can Lead to a Perverse Redistribution of Income If