Q11
The economist's objections to monopoly rest on which of the following grounds?
A.
There is a transfer of income from consumers to the monopolist
B.
There is welfare loss as resources tend to be misallocated under monopoly
C.
Both A and B are incorrect
D.
Both A and B are correct
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The economist's objections to monopoly rest on the following grounds that there is a transfer of income from consumers to the monopolist and there is welfare loss as resources tend to be misallocated under monopoly.