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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

Answer: Option D

Solution(By Examveda Team)

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.

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Comments ( 1 )

  1. Ayush Shah
    Ayush Shah :
    2 years ago

    ____________ is a monopoly firm whose behavior is overseen by a government entity.

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.