October 2012 LSAT Section 4 Question 4

An economist has argued that consumers often benefit when government permits a corporation to obtain a monopoly. With...

Toshig3 on April 26, 2022

Why was answer A wrong?

Is answer A wrong because it fails to address the cons of higher prices, and instead mentions spending the money in "some other way?"

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Emil-Kunkin on May 1, 2022

Hi Toshig,

We are looking to strengthen the conclusion that monopolies can be good for consumers.

(A) tells us that the kind of investment enabled by monopolies is the kind of investment that benefits consumers most. While this does seem to align with the author's view, it does not really support the conclusion. Even if there were a more effective means of investment, the author is not arguing that this is the "best" kind of investment for consumers, only that it benefits consumers. However, it does not prove that the benefits of this investment will outweigh the cost of higher prices, as you noted.