Which of the following statements is TRUE about the price that a monopolist charges?
A) The price is the same as the price that would be charged if there was perfect competition.
B) The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs.
C) The value that society places on the last unit produced in a monopoly is greater than its cost.
D) Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set.
C
You might also like to view...
Assume that the demand for apples is downward sloping. If the price of apples falls from $.80 per pound to $.65 per pound, which of the following will occur?
A. A smaller quantity of apples will be demanded. B. A larger quantity of apples will be demanded C. Demand for apples will decrease D. Demand for apples will increase E. Supply of apples will decrease
In economics, capital refers to _____
a. wages earned by workers. b. dividends and interest earned by investors. c. the foreign reserves held by governments. d. machines, buildings, tools, and knowledge. e. the net worth of firms.