A Feature of Monopoly That Leads to Unfavorable Consequences Is

question 117

Multiple Choice

A feature of monopoly that leads to unfavorable consequences is that it:

• A) reduces income inequality.
• B) sets marginal cost equal to price.
• C) produces more output than if perfectly competitive firms characterized the same industry.
• D) charges a higher price than if perfectly competitive firms characterized the same industry.

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Definitions:

Norms

Informal standards of conduct that group members share and that guide member behavior.

Conduct

The manner in which a person behaves, especially in a particular place or situation.

Participative Management

An effort to involve employees in a company’s decision-making.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.