The Authors Claim That Monopolists Will Tend to Practice Stronger

question 47

Multiple Choice

The authors claim that monopolists will tend to practice stronger conservation of depletable resources than would occur under a perfectly competitive market structure. Why is this true?

• A) Monopolists are typically taxed at higher rates than competitive firms, so they will tend to reduce output and revenues in order to minimize their tax expenditures.
• B) The profit-maximizing decisions of a monopolist tend to generate lower output levels than under perfect competition, so the resource is depleted at a slower rate by the monopolist.
• C) Common property resource problems do not arise when there is only one seller.
• D) The lower depletion rate used by monopolists serves as a barrier to entry.

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Definitions:

Self-managed Work Groups

Teams that operate without direct supervision, taking collective responsibility for task management, decision making, and problem solving.

Specialized Roles

Positions or tasks within an organization or team that require specific skills, knowledge, or expertise unique to that role.

Superordinate Goals

Are shared goals that can only be achieved through cooperation among individuals or groups, often used to resolve conflicts and foster unity.

Cross-functional Teams

Teams composed of members from different departments or functional areas, collaborating towards a common goal.