A Monopoly Generates Inefficiency Because

question 205

Multiple Choice

A monopoly generates inefficiency because:

• A)the high prices cause some people to choose to go without the good
• B)the monopoly owner earns an abnormally large profit
• C)the monopoly pays its workers very low wages
• D)of all of the above

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Definitions:

Discount Period

The timeframe during which a discount is offered for prompt payment on sales.

Merchandise Sold

The products that a retailer, wholesaler, or distributor has sold to customers during a specific period.

Gross Profit

The income left over for a company once it has covered the costs involved in manufacturing and selling its products, or in offering its services.

Merchandise Sold

Products or goods that have been sold to customers, typically referring to transactions within the retail or wholesale sector.