The Idea That Monopolies Do Not Have to Act Efficiently

question 124

Multiple Choice

The idea that monopolies do not have to act efficiently because they are protected from competition is known as

• A) cost containment.
• B) market power.
• C) x-inefficiency.
• D) rent seeking.

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Definitions:

Private Goods

Products or services that are consumed by one individual and cannot be used simultaneously by others.

Rival in Consumption

A characteristic of a good whereby its consumption by one individual prevents simultaneous consumption by another individual.

Excludable

A characteristic of a good or service whereby it is possible to prevent non-paying customers from having access to it.

Concerts

Live performances of music before an audience, ranging from solo performances to ensemble or orchestral presentations.