If an unregulated monopolist operates in a market, then:
a. customers will pay higher prices than if the market were competitive
b. customers will purchase fewer units of output than if the market were competitive.
c. society will not be allocating its resources efficiently.
d. all of the above will occur.
d
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Which of the following statements regarding the efficiency of monopolistic competition is FALSE?
A) Compared to a situation with total product uniformity, monopolistic competition might be efficient. B) Resources are used efficiently when marginal social benefits equals marginal social cost. C) Monopolistic competition is definitely inefficient because price exceeds marginal cost. D) A greater degree of product variety creates a loss because the quantity produced is less than the efficient quantity.
A supply curve generally
a. is a straight horizontal line. b. is a straight vertical line. c. slopes downward to the right. d. slopes upward to the right.
The logistical costs associated with implementing a tax are called the:
A. deadweight loss. B. administrative burden. C. total surplus. D. tax revenue.
Unstable property rights will usually cause
A. lower levels of investment spending. B. lower levels of real interest rates. C. higher levels of investment spending. D. higher levels of real interest rates.