An Important Benefit of Private Ownership of a Monopoly Is

question 24

Multiple Choice

An important benefit of private ownership of a monopoly is that a private monopoly has more incentive to:

• A)bargain for much lower wages for its workers
• B)charge a price that is consistent with that of a benevolent social planner
• C)lower its costs so that it can earn more profit
• D)price its good according to the intersection of marginal cost and average revenue

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Definitions:

Fractions

Mathematical expressions representing the division of one integer by another, distinct from zero.

Lowest Terms

A fraction reduced to the lowest terms where the numerator and denominator are the smallest possible numbers that retain the original value.

Fractions

Numerical quantities that represent a part of a whole, commonly expressed with a numerator and a denominator.

Lowest Terms

The most basic version of a fraction, in which both the top and bottom numbers have been minimized to the lowest possible figures.