If a Good Has Only One Producer, with No Threat

question 62

Multiple Choice

If a good has only one producer, with no threat of competition, the market for this good likely:

• A) has greater consumer surplus than in a competitive equilibrium.
• B) has the price set inefficiently high.
• C) has the price set below the competitive equilibrium price.
• D) is efficient.

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Definitions:

Homeostasis

The ability or tendency of an organism or a cell to regulate its internal conditions, such as temperature and pH, to stabilize health and functioning, despite external changes.

Equilibrium

A state of balance or stability within a system, achieved when opposing forces or influences are of equal strength.

Macro-System Changes

Large-scale transformations or shifts within an entire system or society, often involving policy, social norms, or structural adjustments.

Generalist Practitioners

Professionals who have a broad range of skills to address a wide variety of issues, often used in social work and healthcare.