A single-price monopoly is economically inefficient because, at the profit-maximizing output:
A. marginal revenue exceeds product price at all profitable levels of production.
B. monopolists always price their products on the basis of the ability of consumers to pay
rather than on costs of production.
C. MC > P.
D. society values additional units of the monopolized product more highly than it does the
alternative products those resources could otherwise produce.
Answer: D
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The more times a worker performs a particular task, the more proficient the worker becomes at that task. This source of productivity increase is called
A) repetition. B) specialization. C) continuity. D) innovation.
Which of the following statements is true?
a. Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. b. A worker with a college degree always earns less than a worker without a college degree. c. A worker with a college degree always earns more than a worker without a college degree. d. A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. e. Both the workers earn equal incomes after a certain period of time.