Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
a. The output of the monopolist will be too large and the price too high.
b. The output of the monopolist will be too large and the price too low.
c. The output of the monopolist will be too small and the price too high.
d. The output of the monopolist will be too small and the price too low.
C
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In the above figure, CBL is the cost of breaking the law. If it is illegal to sell, but not illegal to buy, then the price per unit will be
A) $500. B) $400. C) $300. D) $200.
If purchasing-power parity between France and the U.S. holds, but then U.S. prices rise,
a. the real exchange rate is above its purchasing-power parity value. An increase in the nominal exchange rate can move it back. b. the real exchange rate is above its purchasing-power parity value. A decrease in the nominal exchange rate can move it back. c. the real exchange rate is below its purchasing-power parity value. An increase in the nominal exchange rate can move it back. d. the real exchange rate is below its purchasing-power parity value. A decrease in the nominal exchange rate can move it back.