Monopolies are inefficient because
A) they price discriminate.
B) they want to maximize profits.
C) they always make above-normal profits.
D) price exceeds marginal cost.
D
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Technological advances that allow a good to be produced at a lower cost will shift the demand curve rightward.
Answer the following statement true (T) or false (F)
The local barber in a small town has decided to raise the price of his haircuts by 25% because he realizes he is the only barber in town and of course "everyone has to get a haircut"
His rational is that the demand for his services is price inelastic? What mistake is he making?
A determinant of the supply of loanable funds is:
A. current economic conditions. B. expected profit on an investment. C. investors’ confidence. D. All of these are determinants of the supply of loanable funds.
The high-income economies of the world have learned there is no long-run gain to letting _______ become established.
a. entrepreneurship b. unemployment c. inflation d. censorship