The Conclusion That a Monopoly Results in Lower Output and Higher

question 345

Multiple Choice

The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that

• A) the demand curve for a monopoly is horizontal.
• B) consumers are ignorant of the effects of monopoly.
• C) the costs of production are the same whether the industry is perfectly competitive or a monopoly.
• D) elasticity of demand varies along the market demand curve.

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Definitions:

Persistence

Constancy of purpose and unrelenting determination; a leadership quality required to persevere and prevail, even when others lose their strength and will.

Peak-Performance

is a state where an individual or team operates at their maximum potential, achieving the highest level of productivity and effectiveness.

Exhilaration

A feeling of excitement, happiness, or elation often experienced during moments of high achievement or adventure.

Unconsciously Incompetent

Not being aware of one's lack of skill or knowledge in a particular area.