The Nature of the Loss of Total Economic Surplus from Monopoly

question 14

Multiple Choice

The nature of the loss of total economic surplus from monopoly is that

• A) the marginal cost of the last unit the monopolist produces is greater than the marginal benefit.
• B) the marginal benefit of the last unit the monopolist produces is greater than the marginal cost.
• C) through the use of his market power,the monopolist can force consumers to pay higher prices.
• D) the monopolist produces too much output.
• E) the monopolist earns huge profits at the expense of the consumer,who has few alternatives.

Identify and explain the differences between assets, liabilities, and equity.

Understand the role of budgets in planning and controlling organizational finances.

Grasp the critical steps in the accounting cycle and their sequential order.

Understanding the composition and purpose of a balance sheet.

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Definitions:

Product Diversity

The variety of different items that a company produces or that is available in a market.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and all economic actors have fully adjusted to any economic changes, leading to a no-profit, no-loss scenario.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and differentiated competition.

Zero Profit

A situation where a firm's total revenues exactly equal its total costs, resulting in no net gain or loss.