-Refer to the Table Above

question 186

Multiple Choice

-Refer to the table above.The deadweight loss due to monopoly in the market stems from the fact that

• A) this monopolist will earn a large profit.
• B) the value of unit four and unit five exceed or equal the cost of producing them.
• C) the cost of producing units four and five exceed their value.
• D) the monopolist's price is "too low."
• E) the monopolist's output is "too large."

---

Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Economist Amartya Sen

An Indian economist and philosopher, noted for his contributions to welfare economics, social choice theory, and for his work on famine, human development theory, and the underlying mechanisms of poverty.

Famine

Famine is a severe shortage of food, often due to disaster, war, or economic failure, leading to widespread hunger and malnutrition.

Unequal Access

A situation where different groups or individuals have varying levels of access to resources, information, or opportunities, often leading to disparities and inequality.