In Order to Eliminate the Inefficiency Brought About by a Monopoly

question 38

Multiple Choice

In order to eliminate the inefficiency brought about by a monopoly, the government wants to impose a price ceiling on the monopoly.What is the optimal price to be imposed?

• A)the competitive price.
• B)the competitive price - unless it is below ATC.
• C)the competitive price - unless it is below MR.
• D)the competitive price - unless it is above ATC.

---

Definitions:

Attitudes

Mental and emotional entities that predispose an individual to respond in a particular way to objects, people, and situations.

Feelings

Emotional states or reactions that are subjectively experienced by individuals, often triggered by external events or internal thoughts.

Neuroticism

A personality trait involving a long-term tendency to be in a negative emotional state, characterized by moodiness, anxiety, and emotional instability.

Extraversion

Extraversion is a personality trait characterized by outgoingness, high energy, and a preference for social interaction.