Refer to Figure 16-6. If Sensei acts as a monopolist, his profit-maximizing price is ________ and the number of classes sold is ________

When a person does not have to pay the full costs for using a scarce resource, then there is

A) an underproduction of a good. B) a negative externality. C) a positive externality. D) too little economic profit in the activity.

With a monopoly, the producer’s surplus is lower than it would be with a perfectly competitive industry.

Answer the following statement true (T) or false (F)