A Monopoly Might Produce Less Than the Socially Optimal Amount

question 51

Multiple Choice

A monopoly might produce less than the socially optimal amount of pollution because

• A) it likes to be a good citizen.
• B) it sets price above marginal cost.
• C) it earns economic profit.
• D) it internalizes the external costs.

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Definitions:

Turnover Rate

The rate at which a company hires and separates employees, or the rate at which inventory or assets are replaced through sales.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Use Of Cash

A summary of how a company's cash is being utilized in operations, investments, and financing activities.

Accounts Payable

Represents money owed by a company to its creditors for goods and services purchased on credit.