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Why May Private Ownership of a Monopoly Benefit Society

Question 214

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Why may private ownership of a monopoly benefit society


A) The monopoly will have an incentive to charge a price that is consistent with that of a benevolent social planner.
B) The monopoly will not have an incentive to charge a price that prevents some people from buying.
C) The monopoly will have an incentive to price its good according to the intersection of marginal cost and average revenue.
D) The monopoly will have an incentive to lower its costs so that it can earn more profit.

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