If Both a Monopoly and a Competitive Market with the Same

question 116

Multiple Choice

If both a monopoly and a competitive market with the same marginal cost would produce a quantity that is greater than the social optimum in a market because of externalities,then

• A) welfare is greater under monopoly.
• B) welfare is greater under competition.
• C) welfare is the same for both market structures.
• D) the social optimum must be zero.

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Definitions:

U-4 Measure

A specific measure of unemployment that includes all persons who are not currently working but are willing to work and actively seeking employment, plus discouraged workers.

Discouraged Workers

Individuals who have stopped looking for employment due to the belief that there are no jobs available for them.

Spells Of Unemployment

Spells of unemployment refer to the durations during which an individual is continuously unemployed, often tracking the frequency and length of these periods over a person's career.

Ideal Labor Market

An ideal labor market is a theoretical construct where there is perfect competition, equal access to information, and no barriers to entry or exit, leading to efficient employment outcomes.