Conclusions About the Misallocation of Resources Under Conditions of Monopoly

question 330

Multiple Choice

Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that

• A) monopolies are interested in economic profits and competitive firms are not.
• B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry.
• C) the economies of scale exist only in perfectly competitive industries.
• D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.

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Definitions:

Complete Proposition

A statement or assertion that conveys a complete thought or idea, typically containing a subject and predicate that make a declarative statement.

Shading

The act of adding gradations of darkness or color to an artwork to indicate shadow or depth.

Existential Import

The assumption within a proposition that something exists.

Square of Opposition

A diagram representing the logical relationships between certain types of propositions in classical logic.