Because a monopoly ignores external costs, it is possible that it will
A) produce the socially optimal quantity of a good.
B) produce more than the socially optimal quantity of a good.
C) produce less than the socially optimal quantity of a good.
D) All of the above.
D
You might also like to view...
What two variables are determined in an aggregate supply-aggregate demand figure? Is the slope of the short-run aggregate supply curve positive or negative? Is the slope of the aggregate demand curve positive or negative?
What will be an ideal response?
Because it does not face competition from other firms, a monopolist is guaranteed to make excess profits over time
Indicate whether the statement is true or false
When the FTC investigated whether firms conspired to fix prices of computer memory called dynamic random-access memory (DRAM) chips, Samsung, Micron Technology, Hynix Semiconductor, and Infineon controlled more than 75 percent of the market for DRAM chips. The market for these chips is most likely:
A. oligopolistic. B. monopolistic. C. perfectly competitive. D. monopolistically competitive.
The amount to which some current amount of money will grow as interest compounds over time is known as:
A. the future value of that sum of money. B. the present value of that sum of money. C. compound interest. D. the time-value of money.