Which of the Following Statements Is Correct? Monopolies Are Socially

question 430

Multiple Choice

Which of the following statements is correct? Monopolies are socially inefficient because they
(i) charge a price above marginal cost.
(ii) produce too little output.
(iii) earn profits at the expense of consumers.
(iv) maximize the market's total surplus.

• A)(iii) only
• B)(iii) and (iv) only
• C)(i) and (ii) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Hoover Administration

The U.S. presidential administration of Herbert Hoover, serving from 1929 to 1933, noted for its handling of the early stages of the Great Depression.

Tariff Rates

Tariff rates refer to the taxes imposed by a government on imported goods, affecting their price and ultimately impacting international trade.

Monetary Policy

Actions taken by a central bank, currency board, or other regulatory authorities to control the supply of money and interest rates in a country, aiming at managing economic growth and stabilizing the currency.

National Industrial Recovery Act

A 1933 U.S. legislation aimed at boosting economic growth by reducing unemployment and increasing purchasing power through regulations on wages, prices, and working hours.