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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