X-Inefficiency Is Said to Occur When a Monopolist's

question 110

Multiple Choice

X-inefficiency is said to occur when a monopolist's

• A)average cost is greater than the minimum possible average cost.
• B)marginal costs are greater than the minimum possible average cost.
• C)output level is higher than is socially optimal.
• D)price is higher than its average cost.

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Definitions:

Usury Law

Legislation regulating the maximum interest rate that can be charged on a loan, to protect consumers from excessively high rates.

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers.

Gas Lines

Queues of vehicles waiting to fuel up, sometimes seen during periods of fuel shortages.

Price Ceilings

Government-imposed limits on how high a price can be charged for a product, service, or commodity, usually intended to protect consumers.