By Reducing Its Output Compared to a Competitive Market, a Monopoly

question 135

Multiple Choice

By reducing its output compared to a competitive market, a monopoly leads to

• A) a deadweight loss.
• B) external costs.
• C) a more efficient use of resources.
• D) external benefits.

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Definitions:

P(B)

The probability notation referring to the likelihood of event B occurring.

Independent

Not influenced by or contingent upon others; describes variables that operate without interference from other variables.

P(B|A)

The probability of event B occurring given that event A has already occurred, indicating a conditional probability.

P(A and B)

The likelihood of event A and event B happening simultaneously.