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Briefly Explain Why Monopolists Are Neither Productively nor Allocatively Efficient

question 64

Essay

Briefly explain why monopolists are neither productively nor allocatively efficient and briefly describe what results from these circumstances.


Definitions:

Extrinsic Sources

Factors external to an individual that influence their behavior and decisions, such as rewards or social pressures.

Downward Social Comparisons

The act of comparing oneself to others who are perceived as worse off in order to feel better about one's own situation.

Self-Handicapping

The behavior of creating obstacles or excuses for oneself to avoid blame in case of failure or poor performance.

Social Conformity

the act of altering one's behavior or beliefs to match those of others within a group.

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