Which of the Following May Eliminate Some or All of the Inefficiency

question 170

Multiple Choice

Which of the following may eliminate some or all of the inefficiency that results from monopoly pricing?

• A) The government can regulate the monopoly.
• B) The monopoly can be prohibited from price discriminating.
• C) The monopoly can be forced to operate at a point where its marginal revenue is equal to its marginal cost.
• D) None of the above would eliminate any inefficiency associated with a monopoly.

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Definitions:

Reticular Activating System

A network of neurons located in the brainstem that plays a crucial role in controlling arousal and the transition between sleep and wakefulness.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Brain Stem

The part of the brain that connects the spinal cord with the forebrain and cerebrum, controlling many basic life functions such as breathing and heart rate.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, responsible for controlling basic life functions such as breathing and heart rate.