How does monopoly compare with pure competition in terms of price, output, and efficiency?
What will be an ideal response?
Given the same costs of production, a monopolist will charge a higher price and produce less output than a purely competitive firm or industry. The result in monopoly is an under allocation of resources to the production of the product. Society would prefer more output.
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In an open economy, domestic investment equals:
A. domestic saving plus net capital outflows. B. domestic saving. C. net capital inflows. D. domestic saving plus net capital inflows.
What is least accurate about the US experience with the income tax?
a. The federal income tax was not used for an extended period until after 1910. b. In the late 1800s and early 1900s, people from the South and West were most likely to support an income tax. c. Increases in the income tax were justified by using the money for more generous army pensions and increased military spending, especially for the US Navy. d. Provisions for the income tax were stated in the US Constitution.