It Is Possible for a Monopolist to Be More Efficient

question 70

Multiple Choice

It is possible for a monopolist to be more efficient than a perfectly competitive firm if _____.

• A) the monopolist charges a higher price for its output than does the competitive firm
• B) the monopolist's marginal cost curve lies below that of the competitive firm
• C) the monopolist offers a lower level of output for sale than does the competitive firm
• D) the monopolist practices price discrimination

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Definitions:

Barriers To Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Oligopolistic

Pertaining to a market structure where a small number of firms dominate the industry, influencing prices and marketing strategies.

Perfectly Competitive

A market structure characterized by a complete absence of rivalry among the sellers and an infinite number of buyers and sellers, where no single buyer or seller has market power.

Identical Products

Goods that are exactly the same in every feature, quality, and specification, allowing no variation between them.