The Profit-Maximizing Output of a Pure Monopoly Is Not Socially

question 21

Multiple Choice

The profit-maximizing output of a pure monopoly is not socially optimal, because in equilibrium

• A) price equals minimum average total cost.
• B) marginal revenue equals marginal cost.
• C) marginal cost exceeds price.
• D) price exceeds marginal cost.

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Definitions:

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society.

Cis

Short for "cisgender," describing individuals whose gender identity matches the sex they were assigned at birth.

Trans

A term used to describe individuals whose gender identity differs from the sex they were assigned at birth.

Cisgender

A term for individuals whose gender identity matches the sex they were assigned at birth.