Which of the Following Statements Comparing Monopoly with Competition Is

question 37

Multiple Choice

Which of the following statements comparing monopoly with competition is correct?

• A)A monopolist produces a higher level of output and charges a lower price than a competitive firm would.
• B)With perfect price discrimination, the total surplus under monopoly can be the same as under competition.
• C)With or without price discrimination, the consumer surplus under monopoly is at least as large as it would be under competition.
• D)The deadweight loss associated with monopoly is caused by the positive economic profits of the monopolist; competitive firms do not earn a positive economic profit so there is no deadweight loss under competition.

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Income Tax

Taxes that are based on the amount of taxable income that you earn.

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Income derived from active participation in a business or trade, typically including wages, salaries, commissions, and tips.

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Medical Deduction

An itemized deduction on personal income taxes for expenses related to healthcare beyond a certain percentage of adjusted gross income.