Assuming That Firms Maximize Profits, How Will the Price and Output

question 182

Multiple Choice

Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?

• A) The output of the monopolist will be too large and the price too high.
• B) The output of the monopolist will be too large and the price too low.
• C) The output of the monopolist will be too small and the price too high.
• D) The output of the monopolist will be too small and the price too low.

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Definitions:

Pedophilic Disorder

A psychiatric disorder characterized by an adult's sexual attraction to prepubescent children.

Child Molester

An individual who sexually abuses a pre-pubescent child (or children) but does not necessarily have a sexual preference for children.

Frotteuristic

Pertains to a paraphilic interest involving touching or rubbing against a non-consenting person, typically in crowded places.

Pedophilic

Pertaining to pedophilia, a psychiatric disorder in adults or older adolescents characterized by a primary or exclusive sexual attraction to prepubescent children.