As Adam Smith Indicated, the Trouble with Monopoly Is That

question 71

Multiple Choice

As Adam Smith indicated, the trouble with monopoly is that

• A) firms have no incentive to produce efficiently.
• B) regardless of what is produced, the firm will use too many resources.
• C) a producer has no incentive to keep his costs down.
• D) the monopolist "understocks" the market and charges too high a price.