Economists object to monopolies on the grounds that monopolies:
a. can fix prices at levels that are too high.
b. lack productive efficiency.
c. lack allocative efficiency.
d. can only exist hypothetically.
c. lack allocative efficiency.
Economists object to monopolies because they do not supply enough output to be allocatively efficient.
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If the MB of polluting decreased, then what would happen to the optimal level of pollution?
A. Decrease B. Unsure C. Increase D. Stay the same
A 5 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming static tax analysis?
A) The total revenue will be zero. B) The total revenue will be between $0 and $5,000. C) The total revenue will be $5,000. D) There is not enough information to determine what revenues will equal.
The government imposes a maximum price on apartments that is above the equilibrium price. You accurately predict that
A. the law will create a surplus of apartments. B. landlords are less likely to do routine maintenance work in the apartments. C. renters will find that landlords start offering to furnish the apartments. D. the law will have no economic impact.
The benefits to trading nations based on comparative advantage accrue from
A. specialization and trading. B. trading only. C. specialization only. D. protection of domestic industries.