Maximizing society happiness


Monopolies: Discuss the following statements in Detail

1) Are a good thing since they transfer resources from lower-valued to higher- valued activities thereby helping to maximize society's happiness?

2) Are bad because they produce too little output; thereby decreasing society's happiness

3) A monopoly problem arises whenever Marginal Revenue (the change in Total revenue caused by an increase in output of one unit), is substantially less than Price at the firm's profit-maximizing level of output

4) Can government regulation fix (a), (b), and (c) above ? if so how, if not why?

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Macroeconomics: Maximizing society happiness
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