All of the Following EXCEPT One Are Reasons for Monopolies

question 39

Multiple Choice

All of the following EXCEPT one are reasons for monopolies to be regulated. Which is the exception?

• A)Monopolies are guaranteed to make economic profits in the long run.
• B)Monopolies are inefficient.
• C)The existence of monopolies may lead to a more unequal distribution of benefits.
• D)Monopolists produce below efficient level of production.
• E)Monopolies charge excessive prices.

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Definitions:

Canisters of Soybean Oil

Containers used for storing and transporting soybean oil, often used in cooking and industrial processes.

Cheapest Way

The most cost-effective method to achieve a particular goal or complete a task, minimizing expenditure.

Short-Run Production Function

A mathematical representation of the relationship between input changes and output levels in a production process, considering some inputs as fixed.

Total Cost Function

The total cost function describes the total cost of production as a function of the quantity of output, including both fixed and variable costs.