Objections to monopolies do not include which of the following?
a. They reduce output below the efficient level of output that would be produced in perfect competition.
b. They reduce the price below what would be charged in perfect competition.
c. They charge a price that is greater than marginal cost.
d. They create a welfare cost.
e. All of the preceding are objections to monopolies.
Ans: b. They reduce the price below what would be charged in perfect competition.
You might also like to view...
If your wealth is held as currency or in checking accounts, or other assets that you can convert to money on short notice, your assets are considered to be
A) abundant. B) interest bearing. C) liquid. D) fast moving.
Median household income in the United States has increased from $38,771 in 1967 to $51,017 in 2012. Based only on this fact, we can conclude that
A) Inequality is increasing in the United States. B) Inequality is decreasing in the United States. C) Inequality is not changing in the United States. D) We cannot conclude anything about inequality in the United States without more information.
The principle that "More is better" results in indifference curves
A) sloping down. B) not intersecting. C) reflecting greater preferences the further they are from the origin. D) All of the above.
Appendix: An incentive-compatible mechanism for revealing true willingness to pay in a private value auction is
a. impossible b. a Dutch auction c. a second-highest sealed bid auction d. a sequential auction with open bidding e. a discriminatory price all-or-nothing auction.