Which of the Following Best Explains Why Economists Are Generally

question 181

Multiple Choice

Which of the following best explains why economists are generally critical of unregulated monopolists?

• A) Monopolists do not try to minimize their costs of production.
• B) Monopolists produce where marginal revenue is greater than marginal costs.
• C) Monopolists attempt to produce too many products, and as a result, their prices are high, and consumers waste time trying to choose between too many options.
• D) Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.

---

Definitions:

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the selection of board members.

Investment Account

A financial account held at a bank or brokerage that is used to hold securities, stocks, bonds, and other investments.

Unamortized Acquisition Differential

The portion of the difference between the purchase price and the book value of an acquired entity that has not yet been amortized.

Equity Method

An accounting technique used by a company to record its investment in another company based on the profit or loss and other comprehensive income of the investee.