Which of the following statements about monopoly is most accurate?
a. The monopolist has no incentive to produce efficiently.
b. Regardless of what is produced, the monopolist will use too many resources.
c. A monopolist has no incentive to keep costs down.
d. The monopolist "understocks" the market and charges too high a price.
D
Economics
You might also like to view...
Suppose that the elasticity of demand for a product is 0.5 and price decreases by 20%. By what percentage will quantity demanded increase?
A. 0.5% B. 5% C. 10% D. 40%
Economics
In general, the quantity of output in an oligopoly market is:
A. lower than in perfect competition. B. higher than in perfect competition. C. the same as in perfect competition. D. The answer depends on the shape of the average cost curve.
Economics