Which of the Following Statements Is Correct? Monopolies Are Socially

question 430

Multiple Choice

Which of the following statements is correct? Monopolies are socially inefficient because they
(i) charge a price above marginal cost.
(ii) produce too little output.
(iii) earn profits at the expense of consumers.
(iv) maximize the market's total surplus.

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

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Definitions:

Situational Ethics

An ethical theory proposing that moral decisions should be based on the context of a situation, rather than on fixed laws or norms.

Business Behavior

Refers to the actions and strategies of companies as they engage in various business operations and interactions.

Precise Guidelines

Detailed and specific instructions or rules designed to guide actions or conduct in various scenarios.

Situational Ethics

Situational ethics is a moral theory suggesting that ethical decisions should be based on the specific context of a situation, rather than on fixed laws or norms.