Which of the Following Is NOT a Criticism Sometimes Levelled

question 74

Multiple Choice

Which of the following is NOT a criticism sometimes levelled at monopolies?

• A) A monopoly creates a welfare loss.
• B) A monopoly leads to improved economies of scale in production.
• C) A monopoly retards innovation.
• D) A monopoly promotes inefficiency.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Goods

Tangible products or commodities that are manufactured or produced for sale or exchange.

Resources

A broad term that encompasses all the materials, assets, and inputs used by individuals or organizations to produce goods and services.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs, attempting to determine how these groups should organize and coordinate efforts to achieve maximum output.