(5) The Case Against Monopoly I
Monopoly, Economic Profits, Allocative Inefficiency, Undesirable Properties
This describes the case against Monopoly, the economic reasons for preferring Perfect Competition to Monopoly. The desirable features of Perfect Competition are reviewed and compared to the Monopoly outcome.
Crane, Steven E., "(5) The Case Against Monopoly I" (2011). Principles of Microeconomics. Paper 49.
Ability to identify the desirable features of Perfect Competition and explain why these do not tend to occur in Monopoly. Ability to explain the economic argument against Monopoly as a market structure.
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