The Social Cost of a Monopoly Is Equal to Its

question 161

Multiple Choice

The social cost of a monopoly is equal to its

• A)economic profit.
• B)fixed cost.
• C)deadweight loss.
• D)variable cost.

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Definitions:

Fixed-Cost

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Activity Level

A measure of the amount of work or operations conducted by a business or organization during a specific period.

Activity Index

A measure used to understand the level of activity in a particular area, such as production or sales, often used in planning and forecasting.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.