Without regulations,monopolists will produce at an output level where marginal benefit is greater than marginal social cost.

Question

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Without regulations, monopolists have the power to set high prices and limit output to maximize their profits, leading to the production of an output level where the marginal benefit is greater than the marginal social cost. This results in a deadweight loss to society and is inefficient. Regulations can help prevent monopolists from acting in this way and promote competition for the benefit of consumers and society as a whole.

Without Regulations,monopolists Will Produce at an Output Level Where Marginal