Which of the following best explains an economic criticism of unregulated monopolists?
a. Monopolists do not try to minimize their costs of production.
b. Monopolists produce where marginal revenue is greater than marginal costs.
c. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options.
d. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
d
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Exhibit 30-1
?
A. It is the quantity of output at which marginal social costs (MSC) equal marginal private costs (MPC). B. It is the quantity of output at which MPC > MSC. C. It is the market output; it is the quantity of output that exists if the external costs associated with the negative externality are not taken into account. D. It is the socially optimal output; it is the quantity of output that exists if the external costs associated with the negative externality are taken into account. E. none of the above
In long-run equilibrium, the monopolistically competitive firm:
a. will break even. b. will cease to advertise. c. will earn a positive economic profit. d. will face a perfectly elastic demand curve. e. will no longer need to engage in non-price competition.
In the long run, inflation results from increases in a nation's money supply that exceed increases in its output of goods and services
a. True b. False Indicate whether the statement is true or false
All of the following influence the government's decisions to allow various tax deductions, tax exemptions, tax credits, and tax write-offs, except
a. matters of fairness b. incentives to work c. incentives to save d. incentives to invest e. incentives to vote