A single-price monopoly is economically inefficient because, at the profit-maximizing output:
A. marginal revenue exceeds product price at all profitable levels of production.
B. monopolists always price their products on the basis of the ability of consumers to pay
rather than on costs of production.
C. MC > P.
D. society values additional units of the monopolized product more highly than it does the
alternative products those resources could otherwise produce.
Answer: D
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Where Y is GDP, C is consumption, I is investment, G is government purchases, T is net taxes, and there is no international trade, the government budget deficit equals:
A. Y + T - G. B. T - G. C. Y - G. D. G - T.
When the price of a good falls and the prices of other goods and a consumer's income remain the same, explain what happens to the consumption of the good whose price has fallen and to the consumption of other goods
What will be an ideal response?
If a project involves risk, managers can account for the risk by ________ the discount rate, which ________ the present value of the future profits.
A) increasing; decreases B) decreasing; decreases C) increasing; increases D) decreasing; increases
A bubble is best defined as
a. an increase in the price of an asset resulting from fundamentals causes. b. an increase in the price of an asset resulting from factors other than fundamentals causes. c. a decrease in the price of an asset resulting from fundamentals causes. d. a decrease in the price of an asset resulting from factors other than fundamentals causes.