Monopolies are usually viewed with concern from an economic standpoint since
A)size is inherently dangerous;the larger the firm,the more likely it is to squeeze out the "little producer."
B)resources may be allocated in an inefficient manner.
C)the government may be put at the mercy of several large producers.
D)the variety of goods available on the market will be limiteD.

Question

Quizplus · Accepted Answer

Monopolies can lead to inefficiencies in resource allocation as the absence of competition may result in fewer incentives for the monopolist to innovate or lower prices. This can result in higher prices for consumers and reduced consumer surplus. Additionally, monopolies can discourage new entrants into the market, further reducing competition and innovation.

Monopolies Are Usually Viewed with Concern from an Economic Standpoint