Monopolies exist for each of the following reasons, EXCEPT:
a. competitors are legally unable to challenge them.
b. they have control over resources with very few good substitutes.
c. it is sometimes inefficient to have competition in certain markets.
d. it increases both producer and consumer surplus.
D
You might also like to view...
In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer. B) the value of the good to the buyer is greater than its value to the seller. C) the variable cost of producing the good is zero. D) the opportunity cost of consuming the good is zero.
At a price of $1.20, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.40, the coffee shop would be willing to supply 150 cinnamon rolls per day. Using the midpoint method, the price elasticity of supply is about
a. 0.15 b. 0.375 c. 2.5 d. 2.60