Monopoly Is Allocatively Inefficient Because

question 100

Multiple Choice

Monopoly is allocatively inefficient because

• A) the price exceeds the marginal cost of the last unit produced.
• B) the firm has no incentive to maximize profits.
• C) the opportunity cost exceeds the marginal cost of the last unit produced.
• D) the marginal cost exceeds the average cost for the last unit produced.
• E) lower costs could be achieved.

Identify the use of negative terms in definitions and when they are acceptable.

Distinguish between logical, obscure, metaphorical, and vague definitions.

Recognize the importance of the genus and differentia in creating definitions.

Identify and apply the rule against using negative terms unless defining inherently negative concepts.

---

Definitions:

Interactional Justice

A concept in organizational behavior that concerns the quality of the interpersonal treatment people receive when organizational procedures are implemented.

Interpersonal Treatment

The manner in which individuals interact with and behave towards one another in a social or professional setting.

Downsizing Decision

An organizational strategy to reduce workforce size, operational costs, and complexity by eliminating positions or departments.

Outsourcing

The practice of contracting out certain business functions or processes to a third-party provider.