Which of the following is a valid criticism of unregulated monopoly?
a. Monopoly limits the options available to consumers.
b. Relative to a competitive market, a monopolist generally will produce too great an output.
c. Profit-maximizing monopolists will fail to produce at the lowest possible cost.
d. A monopoly's output will often be more than if the market were competitive.
A
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The money multiplier is equal to
A) the government spending multiplier. B) 1/(reserve ratio). C) the marginal propensity to consume. D) the reserve ratio.
An adverse oil-price shock reduces labor demand. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.