Answers

Answers

1. One

2. More

3. They are able to set prices for the entire market

4. When production rises unit costs fall

5. Through an increase in innovation and invention

6. Supernormal profits

7

. They fail to allocate resources efficiently

8. Consumer surplus

9. They are able to control annual price increases

10. As monopolies make large profits there is an argument that states more of these will be invested in research and development and innovation that other market structures

11. As they are often earned at the expense of allocative efficiency

12. Limit choice, mean that they have higher prices, reduces consumer surplus