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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

In a monopoly, are there any true benefits to buyers/the market?

–1 vote
7 views
There are obviously many downsides to everyone other then the supplier in the case of a monopoly, but are there any positives/benefits?
asked Apr 28 by canvas-ace62ab3325c5 (140 points)

2 Answers

–1 vote
yes in some cases there are benefits to buyers in the market when there is a monopoly. a monopoly is a bigger firm and there is only one of them. When there are a lot of little firms sometimes it costs more for a service because they need more revenue to make that good. When there is a monopoly they have all the money going to them making it easier for one central good to be serviced. A monopoly's average cost is lower than their average revenue, making supernormal profits.
answered Apr 28 by canvas-98fa74eec54bd (240 points)
0 votes
Yes, profits and consumer surplus can increase under a monopoly.
answered Apr 29 by canvas-e25408d8f8d15 (216 points)
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