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.

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Definitions:

Less Attractive

The subjective evaluation of an individual or item as being less appealing, desirable, or pleasing in appearance compared to others.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Actor-observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their internal characteristics.

Situational Influences

External factors present in an individual's environment that impact behavior, decisions, and perceptions.