A monopoly misallocates resources when it
A) restricts output so that the marginal benefit of the last unit sold exceeds the marginal social cost of producing the good.
B) makes an above-normal profit.
C) sells the same product to different groups of customers at different prices.
D) exploits scale economies.
A
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In the Supply and Demand of Loanable Funds model presented in Chapter 3, the variable that adjusts to equilibrate the supply and demand for goods and services is:
A. government spending. B. consumption. C. taxes. D. the real interest rate.
Cyclical unemployment arises when
A) unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs. B) labor must be reallocated from industries that are shrinking to areas that are growing. C) workers must search for suitable jobs and firms must search for suitable workers. D) output and employment are below full-employment levels.