Which of the following best explains why economists are generally critical 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 consumers 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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Economies of scale tend to create natural monopolies
a. True b. False Indicate whether the statement is true or false
Which of the following steps should Bufton Dairy, a firm selling dairy products, take in order to earn positive economic profits?
a. Offering products that are identical to those of its rivals b. Producing at the highest point on its average total cost curve c. Acquiring most of its rivals d. Selling only one dairy product
If financial news broadcasts reported that inflation was likely to rise significantly next year, what would most likely happen to the velocity of circulation?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to inflation.
An estimate of a household's long-run average income is called:
A. permanent income. B. disposable income. C. per capita income. D. transitory income.