The price charged by a monopolist is socially inefficient because the price
A. is too low.
B. puts the monopolist into a higher tax bracket.
C. exceeds the true marginal cost of the resources used.
D. is less than the opportunity cost of the resources used.
Answer: C
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Oscar and Felix room together in an apartment in New York City. Oscar is very messy and Felix is obsessed with neatness. Felix cannot stand a messy apartment and is even willing to pay Oscar $50 per week for him to clean up after himself
Oscar hates to clean up so much that he is willing to pay Felix $30 per week to maintain his messy habits. If Felix has the right to a clean apartment explain why the apartment will be clean. If Oscar has the right to remain messy explain why the apartment will still be clean.
________ marginal opportunity cost implies that the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts
A) Constant B) Increasing C) Decreasing D) Negative
The capital gains tax cut enacted in 2003 will hinder capital formation
a. True b. False Indicate whether the statement is true or false
The existence of positive economic profits in an industry attracts new entrants into the industry.
Answer the following statement true (T) or false (F)