Based on the graph below, how does the monopolist's profit-maximizing price and output compare to the efficient price and output?


a. The monopolist charges less and produces less.
b. The monopolist charges more and produces more.
c. The monopolist charges more and produces less.
d. The monopolist charges less and produces more


c. The monopolist charges more and produces less.

Economics

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Suppose you are risk loving and you are deciding between two investments. One has a guaranteed return of 5% while the second has a 50% chance of a 10% return and a 50% chance of a 0% return. Which investment would you choose? Why?

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Economics

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Economics