From the Viewpoint of Allocative Efficiency, Which of the Following

question 64

Multiple Choice

From the viewpoint of allocative efficiency, which of the following is a defect of pure monopoly?

• A) The monopolist undersupplies the market and charges too high a price.
• B) The monopolist is a revenue maximizer not a profit maximizer.
• C) A monopolist has little incentive to produce efficiently (at a low cost).
• D) All of the above are true.

---

Definitions:

Ripe Banana

A stage of banana fruit maturity characterized by soft texture, yellow skin often with brown spots, and a sweet flavor, indicating it is ready for consumption.

Numerical Understanding

The ability to comprehend and work with numbers, including basic arithmetic and numerical concepts.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thought and egocentrism.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.