Monopolists Are Criticised Because They Are Inefficient

question 81

Multiple Choice

Monopolists are criticised because they are inefficient.What is meant by this statement?

• A)Monopolists charge too high a price.
• B)Monopolists don't innovate enough to control pollution.
• C)Monopolists produce a large quantity of waste.
• D)Monopolists usually don't produce at the minimum of the ATC.
• E)Monopolists could use their resources better elsewhere.

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Definitions:

Total Risk

The complete range of risks associated with an investment, including both systematic risk (market related) and unsystematic risk (company or industry specific).

Standard Deviation

A measure of the dispersion or variability of a set of data points from its mean, often used in finance to gauge investment risk.

Risk Premium

The extra return above the risk-free rate that investors require to compensate them for holding a risky asset.

Bearing Risk

The act of accepting potential loss from uncertainty in investment or business operations.