A simple way of describing the social cost of monopoly is to say that it
A) produces too much.
B) makes too much money.
C) has too much political power.
D) restricts output and charges a higher price than a perfectly competitive firm.
Answer: D
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Refer to the information above. What is the level of unintended inventory investment when income is 850?
A) -175 B) 175 C) -200 D) 200
For developing countries:
A. it is best if they avoid trade until ready to compete globally. B. encouraging imports only tends to be more successful than encouraging exports. C. encouraging exports only tends to be more successful than encouraging imports. D. trade can be a major source of development.
To pay interest to those U.S. residents who hold government bonds, the government must tax other U.S. residents, implying that the more we redistribute income among residents to cover interest payments, the higher the average tax rate will have to be
a. True b. False