The Fundamental Reason a Single- Price Monopoly Creates a Deadweight

question 57

Multiple Choice

The fundamental reason a single- price monopoly creates a deadweight loss is that compared to the efficient outcome, the single- price monopoly

• A) restricts output.
• B) reduces the elasticity of demand.
• C) raises fixed cost.
• D) raises variable cost.

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Definitions:

Meritocracy

A societal system where advancement in society is based on an individual's capabilities and merit rather than on family, wealth, or social class.

Discrimination

Discriminatory behavior that unfavorably targets people belonging to distinct categories, mainly due to their racial background, age, gender, or physical limitations.

Gender Biased

Indicates a preconceived preference or prejudice toward one gender over the other, often resulting in unequal treatment.

Caste System

A traditional form of social stratification based on hereditary status, often associated with Hindu society in India, that dictates social positions and occupations.