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:

Formal Rules

Explicitly stated guidelines and laws that govern behavior and procedures within organizations or societies.

Conduct

The manner in which a person behaves, especially within a particular context or environment.

Negative Sanctions

These are punishments or penalties imposed on members of a society or group for violating norms or laws.

Right

A moral or legal entitlement to have or do something.