A Single-Price Monopoly Is Economically Inefficient Because, at the Profit-Maximizing

question 106

Multiple Choice

A single-price monopoly is economically inefficient because, at the profit-maximizing output,

• A)marginal revenue exceeds product price at all profitable levels of production.
• B)monopolists always price their products on the basis of the ability of consumers to pay rather than on costs of production.
• C)MC > P.
• D)society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.

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