Suppose a Lazy Monopolist's Fixed Costs Are Higher Than the Fixed

question 84

Multiple Choice

Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?

• A) It charges a higher price than the monopolist producing efficiently.
• B) It charges a lower price than the monopolist producing efficiently.
• C) It produces fewer goods than the monopolist producing efficiently.
• D) It sets price and quantity the same as the monopolist producing efficiently.

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Definitions:

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Increased monetary compensation for labor, reflecting an elevation in the standard rate paid to workers, often sought after in negotiations between employers and employees or labor unions.

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