Because a monopolist does not face competition from other firms, the outcome in a market with a monopoly
a. does not illustrate profit maximization.
b. is often not in the best interest of society.
c. is characterized by unlimited profits.
d. would be improved if the government produced the product rather than a private firm.
b
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Which of the following statements is true?
A) In any game, the best response of a player is also her dominant strategy. B) The best response of a player is not always her dominant strategy. C) A prisoners' dilemma game is an example of a zero-sum game. D) A prisoners' dilemma game is an example of an extensive-form game.
What do Baack and Ray (1983) find in their survey of U.S. tariff history?
(a) Tariff rates in the U.S. were low. (b) Tariff cuts were associated with the fast-growing industries. (c) The highest tariff rates in the U.S. were associated with the fastest growing industries. (d) The U.S. was a world leader in free trade policy.
Happy Cows is a dairy farm that is currently earning $100,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm, which will generate an additional $40,000 in economic profit. It is economically sound for the managers of Happy Cows to add the second farm if, after accounting for the managerial diseconomies, the first farm's economic profits exceed ________.
A) $30,000 B) $60,000 C) $40,000 D) $10,000
Which of the following economic models is untestable?
a. Demand and supply model of a product market. b. Monopoly model of market power. c. Edgeworth box model of exchange. d. Capital asset pricing model.