Which of the following statements is true?
a. Monopoly results in smaller output and a higher price than would be the case under perfect competition.
b. The monopolist produces at an output where P > MC and the marginal value to society of the last unit produced is greater than its marginal cost.
c. The monopoly is not producing enough output from society's standpoint.
d. Monopoly may lead to greater concentration of economic power and could retard innovation.
e. All of these statements are true.
Ans: e. All of these statements are true.
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Based on Table 9.3, the capital account balance is equal to
A) +25. B) -25. C) -125. D) +125. E) -225.
Historically, the U.S. steel industry has been a good example of
a. monopolistic competition b. a cartel c. a pure monopoly d. the kinked demand curve model of oligopoly e. the price leadership model of oligopoly