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If a government policy change harms a​ monopolist, the government could A. tax those who get additional gains and compensate the​ monopolist, thereby making the change a Pareto improvement. B. increase the general tax rate and compensate the​ monopolist, thereby making the change a Pareto improvement. C. do​ nothing, because the change is a Pareto improvement. D. It is not possible to mitigate the harm to a monopolist.

Respuesta :

Answer:

Correct Answer:

C. do​ nothing, because the change is a Pareto improvement.

Explanation:

Monopolisim is the economic system whereby the business in concentrated in the hands of an individual thereby determining the price of the product which the citizens are going to pay. In a situation whereby the government policy change affect a monopolist, they should do nothing that would be beneficial to the monopolist.

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