Question

All except one of the following are considered drawbacks of monopoly. Which is not? The desire...

All except one of the following are considered drawbacks of monopoly. Which is not?

The desire to maximise profit

The restriction of output

Managerial inefficiency

A lack of emphasis on research and development

Rent-seeking behaviour

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Answer #1

The desire to maximize profit is the only one from the list which is not considered as the drawbacks of the monopoli. Since, this is true for all market structure. Even the objective of firms in perfect competition is also profit maximization. On the other hand, in case of monopoly, output is least as compared to other form of markets. Dues to this, there is deadweight loss (market inefficiency). Further, because of monopoly power, there is no incentive for the monopolist to spend on R&D and the rent-seeking behavior is also one of the drawbacks.

Therefore, the correct option is [the desire to maximize profit].

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