The social cost attached to monopolies is reflected by the fact that
A) monopolies produce more output than consumers desire to buy.
B) consumers pay prices that exceed the marginal cost of production.
C) the demand for a monopolist's product is always lower than the demand for the products of perfectly competitive firms.
D) consumers are always willing to pay lower prices for a monopolist's product than for the products of perfectly competitive firms.
B
You might also like to view...
If a firm accumulates unwanted inventories, then it
A) must hire more workers. B) will increase its production. C) has actual investment equal to its planned investment. D) will decrease its production. E) has actual investment that is less than its planned investment.
Suppose Ramen noodles, an inexpensive but a quite tasty dish, are an inferior good. Why do grocery stores in college towns, that is, towns with a large fraction of college students, stock a lot of Ramen noodles?
What will be an ideal response?
When disposable income is 2,000, savings is
A. 2,000.
B. 1,500.
C. 0.
D. -1,500.
A manager wishes to estimate an average cost equation of the following form:C = a + bQ + cQ2whereQ is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output:
Given the above information, the value of R2 indicates that ________ of the total variation in C is explained by the regression equation.
A. 7679% B. 7.679% C. 76.79% D. 0.7679%