Which of the following are possible outcomes of a monopoly:

1. Higher prices than in competition,

2. Many options for consumers,

3. Efficient production,

4. More output than in competition,

5. Profit maximization for the firm,

6. Deadweight loss,

7. Rent-seeking.

Following are a possible outcome of a monopoly:

• Higher prices than in competition,
• Profit maximization for the firm,
• Deadweight loss,
• Rent-seeking.

Explanation: as we know, that in a monopoly market, there is only one single seller who is managing all its activities from production to distribution, and he does not allow any other form to enter into the market. Because he is a single seller, he decides the prices of his goods and services and charges high prices form the consumers. A monopolist is focused only on profits maximization, and by increasing the prices of goods and services, he achieves maximization of profits. The deadweight loss also occurs in a monopoly because demand and supply are not in equilibrium, and goods and services are usually overvalued. Rent-seeking occurs when a firm is only interested in increasing its profits and does not care to provide any benefits to society. A monopolist is also focused on increasing his wealth; therefore, rest-seeking occurs in monopoly.