Monopolies Are Inefficient Because They

question 177

Multiple Choice

Monopolies are inefficient because they
(i) eliminate barriers to entry.
(ii) price their product at a level where marginal revenue exceeds marginal cost.
(iii) restrict output below the socially efficient level of production.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(iii) only
• D)(i), (ii), and (iii)

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Definitions:

Communication Gap

A situation where there is a failure in properly exchanging information, leading to misunderstandings or conflicts.

Line Managers

Individuals in an organization who are directly responsible for managing employees and operations, often overseeing a specific department or area.

Scenario Planning

Planning that identifies alternative future scenarios and makes plans to deal with each.

Royal Dutch/Shell

A global group of energy and petrochemical companies, known for its innovations in oil and gas exploration.