Discuss some of the reasons why monopoly power is considered undesirable
Some of the reasons are:
1 . High prices reduce the wealth of consumers.
2 . High prices lead to resource misallocation.
3 . Monopoly power creates an obstacle to efficiency and innovation.
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Aggregate output is ________ related to autonomous consumer expenditure, and is ________ related to planned investment spending
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
Use the following information to answer the next question.Maya purchases only three products; orange juice, prepared meals, and on-demand episodes of her favorite shows. Each week she purchases 2 bottles of orange juice, 14 prepared meals, and 8 on-demand episodes. The prices of bottles of orange juice, prepared meals, and on-demand episodes for four different years are shown in the table below.YearPrice of Orange JuicePrice of Prepared MealsPrice of On-Demand Episodes1$2$6$102$6$5$123$4$7$134$4$8$11Based on this information, which of the following statements is true?
A. Maya spent $10 less in Year 1 than in Year 2. B. Maya's buying power increased between Year 1 and Year 4. C. There was inflation from Year 3 to Year 4. D. Maya's purchases cost $30 more in Year 3 than in Year 2.