The Gains to Monopolists from Exercising Market Power

question 95

Multiple Choice

The gains to monopolists from exercising market power

• A) exceed the losses to consumers in monopoly markets, resulting in a net gain to society.
• B) equal the losses to consumers in monopoly markets, resulting in no net change for society.
• C) are less than the losses to consumers in monopoly markets, resulting in a net loss to society.
• D) create smaller deadweight losses than occur in purely competitive industries.

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Definitions:

Deduct

To subtract or take away an amount or part from a total.

Salary

Regular payment made by an employer to an employee, usually monthly or biweekly, for their professional services.

Strict Disciplinarian

An individual who adheres closely to rules or codes of behavior and expects others to do the same, often employing strict or rigorous measures.

Team Role

The specific duties, tasks, or functions that an individual assumes within a team setting to contribute to the group's overall success.