Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often
a. not in the best interest of society.
b. one that fails to maximize total economic well-being.
c. inefficient.
d. All of the above are correct.
d
You might also like to view...
Use the neoclassical theory of investment to explain why technological progress that reduces the price of computers (and related information technology) impacts investment differently than technological progress that makes computers more productive
What will be an ideal response?
Too few resources are devoted to the creation of knowledge because profit-seeking firms
a. undervalue knowledge in their pursuit of revenues. b. overuse their patents. c. tend to free-ride on the knowledge that others have developed. d. tend to rely on existing employee knowledge.
Where do economic agents such as individuals, firms, and nations interact with each other?
A) in public locations monitored by the government B) in any arena that brings together buyers and sellers C) in any physical location where people can physically get together for selling goods, such as shopping malls D) in any location where transactions can be monitored by consumer groups and taxed by the government
Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. A movement from Point A to Point B on supply curve S2 would be caused by a(n)
A. increase in the price of hamburgers, assuming hamburgers are a substitute for pizza. B. decrease in the demand for gardenburgers. C. increase in the price of gardenburgers. D. increase in the price of tomatoes.