Monopolies Are Inefficient Because They

question 177

Multiple Choice

Monopolies are inefficient because they
(i) eliminate barriers to entry.
(ii) price their product at a level where marginal revenue exceeds marginal cost.
(iii) restrict output below the socially efficient level of production.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(iii) only
• D)(i), (ii), and (iii)

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Definitions:

Interactions

The reciprocal action or influence between two or more entities, objects, or individuals, often resulting in a change or response.

Informal Rewards

Unofficial or non-structured forms of recognition and rewards given in a workplace, such as verbal praise, more autonomy, or flexible hours.

Skill-Based Pay

A compensation system that pays employees based on the range, depth, or mastery of their skills and knowledge, rather than their job title or position.

Flexible Benefit

A benefits plan that allows employees to choose from a range of options to create a package that best suits their personal needs and circumstances.