A Nondiscriminating Pure Monopolist Is Generally Viewed as

question 175

Multiple Choice

A nondiscriminating pure monopolist is generally viewed as

• A) productively efficient but allocatively inefficient.
• B) productively inefficient but allocatively efficient.
• C) both productively and allocatively inefficient.
• D) both productively and allocatively efficient.

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Definitions:

Price-Taker Industry

A sector in which businesses must accept the prevailing prices in the market as they have no influence over setting them.

Marginal Costs

The additional cost incurred by producing one more unit of a product or service.

Average Total Cost

The total cost of production divided by the quantity of output produced.

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.