Exhibit 10-8 -Which of the Following Statements Is Always Correct

question 151

Multiple Choice

Exhibit 10-8
-Which of the following statements is always correct?

• A)Inefficiency is likely to occur under competition but is unlikely to occur in the monopoly market structure.
• B)A competitive firm is more able to engage in research and development than is a monopoly.
• C)Monopolies transfer some of the potential consumer surplus from buyers to sellers.
• D)Monopolies transfer some of the potential producer surplus from sellers to buyers.
• E)Monopolies transfer all of the potential consumer surplus from buyers and sellers to the government.