When unregulated monopolies exist,
A)Prices tend to be higher than with a competitive market.
B)Quality tends to be higher than with a competitive market.
C)Production tends to be higher than with a competitive market.
D)Externalities occur.

Question

Quizplus · Accepted Answer

When a monopoly exists without regulation, the monopolist has the power to set prices at a level that maximizes their profits, which tends to be higher than the price that would have been determined in a competitive market. With no competition, there is no pressure to lower prices.

When Unregulated Monopolies Exist