Which statement is true?
A. The monopolist's most efficient output is its most profitable output as well.
B. The monopolist charges a higher price than the perfect competitor in the long run.
C. All monopolists have control over an essential resource.
D. None of these statements are true.
B. The monopolist charges a higher price than the perfect competitor in the long run.
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What method of financing government spending leads to the least crowding-out?
A) Money creation B) Taxation C) Selling bonds to the public D) Selling government assets, like national parks
What would happen to the value of the dollar if prices in the U.S. increased more rapidly relative to prices in other countries?
What will be an ideal response?
Thomas Malthus' prediction of mass starvation resulting from diminishing marginal returns has not been fulfilled because
A) the law of diminishing marginal returns did not hold in this case. B) Malthus ignored other factors like technological change. C) relative to Malthus' day, larger percentage of today's labor works in the agricultural sector. D) All of the above.
Allocative efficiency occurs when
a. output is produced at minimum average cost b. the marginal benefit, that consumers attach to the final unit purchased, just equals the opportunity cost of the resources employed to produce that unit. c. new firms enter a perfectly competitive market d. the marginal benefit consumers attach to products purchased is maximized e. goods and services are sold in an English style auction market