A monopoly is an inefficient way to produce a product because
a. it can earn both short-run and long-run profits.
b. it faces a downward-sloping demand curve.
c. the cost to the monopolist of producing one more unit exceeds the value of that unit to potential buyers.
d. it produces a smaller level of output than would be produced in a competitive market.
d
You might also like to view...
When the yuan per dollar real exchange rate depreciates:
A) the U.S. net exports to China increase while the Chinese net exports to U.S. decrease. B) both the U.S. net exports to China and the Chinese net exports to U.S. increase. C) both the U.S. net exports to China and the Chinese net exports to U.S. decrease. D) the U.S. net exports to China decrease while the Chinese net exports to U.S. increase.
Other things constant, a rise in which of the following would tend to increase the nominal interest rate?
A) The rate of time preference B) The risk premium C) The expected rate of inflation D) Any of the above.
The criteria of Expected Monetary Value (EMV) is used for making decisions when
a. you are certain of the outcome. b. you have no knowledge of possible outcomes. c. you can assign a probability to each outcome. d. all of the above e. none of the above
Mark's Baseballs produces baseballs. Mark's Baseballs has total fixed costs of $500. Mark's average variable cost is $20, and his average total cost is $25. Mark is currently producing:
A. 5 baseballs. B. 25 baseballs. C. 100 baseballs. D. a number of baseballs that cannot be determined from the information provided.