Antitrust legislation is designed to make it illegal for a firm to monopolize an industry. Which of the following best states the economic rationale for this legislation?
-A monopolist produced too little of the good, producing an output that minimizes the average cost of production.
-A monopolist produces too little of the good, charging consumers a price that exceeds the marginal cost of production.
-A monopolist is more likely to pollute the environment than are firms in a competitive industry.
-A monopolist engages in price discrimination, charging low-income people with inelastic demand curves.
-A monopolist produces too much of a good, attracting scarce factors of production that might be better utilized in other industries.
-A monopolist produced too little of the good, producing an output that minimizes the average cost of production.
-A monopolist produces too little of the good, charging consumers a price that exceeds the marginal cost of production.
-A monopolist is more likely to pollute the environment than are firms in a competitive industry.
-A monopolist engages in price discrimination, charging low-income people with inelastic demand curves.
-A monopolist produces too much of a good, attracting scarce factors of production that might be better utilized in other industries.