A Monopoly Is an Inefficient Way to Produce a Product

question 203

Multiple Choice

A monopoly is an inefficient way to produce a product because

• A)it can earn both short-run and long-run profits.
• B)it faces a downward-sloping demand curve.
• C)the cost to the monopolist of producing one more unit exceeds the value of that unit to potential buyers.
• D)it produces a smaller level of output than would be produced in a competitive market.

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Definitions:

Highest Level

Refers to the uppermost tier or maximum degree of something, such as achievement, authority, or quality.

Calm Employees

Workers who maintain a relaxed and stress-free demeanor in the workplace, contributing to a tranquil work environment.

Enthusiastic

Characterized by or displaying intense and eager enjoyment, interest, or approval.

Mundane Activity

Routine or ordinary tasks that are part of daily life, often perceived as boring or dull.