A Monopoly Is an Inefficient Way to Produce a Product

question 203

Multiple Choice

A monopoly is an inefficient way to produce a product because

• A)it can earn both short-run and long-run profits.
• B)it faces a downward-sloping demand curve.
• C)the cost to the monopolist of producing one more unit exceeds the value of that unit to potential buyers.
• D)it produces a smaller level of output than would be produced in a competitive market.

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Definitions:

Inspiration

Inspiration refers to the process of being mentally stimulated to do or feel something, especially something creative or the intake of air into the lungs.

Expiration

The act of coming to an end or the cessation of validity, such as in the context of a deadline or a product's shelf life.

Bucc/o

A combining form in medical terminology that refers to the cheek.

Alimentary Canal

The whole passage along which food passes through the body from mouth to anus, including the esophagus, stomach, and intestines.