Which of the following is a valid criticism of unregulated monopoly?
a. Monopoly limits the options available to consumers.
b. Relative to a competitive market, a monopolist generally will produce too great an output.
c. Profit-maximizing monopolists will fail to produce at the lowest possible cost.
d. A monopoly's output will often be more than if the market were competitive.
A
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Refer to Figure 21-25. Suppose the price of good X is $10, the price of good Y is $5, and the consumer’s income is $210. Then the consumer’s optimal choice is represented by a point on which curve?
a. I4
b. I2
c. I3
d. I1
Suppose you purchase a bond with a coupon of $50 for $1010. You sell it one year later for $900. What rate of return did you earn? Report a percentage with two decimal places
What will be an ideal response?
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. The expected value of John's earnings if he chooses not to expand is:
A. $400,000. B. $200,000. C. $250,000. D. $225,000.
In a monopoly, which of the following is not true?
a) Products are differentiated. b) There is freedom of entry and exit into the industry in the long run. c) The firm is a price maker. d) There is one main seller.