A Monopoly

question 83

Multiple Choice

A monopoly:

• A) allocates resources in a socially optimal way.
• B) produces less than it would if it adhered to the MC = P standard.
• C) adheres to the MC = P standard.
• D) encourages greater efficiency.

---

Definitions:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and to others.

Intuitive Psychology

The natural ability to understand and make predictions about others' thoughts, feelings, and behaviors without extensive formal learning.

Psychological Schemata

Mental structures that organize knowledge and beliefs, influencing perception, memory, and understanding.

Self-Schemes

Cognitive structures that organize knowledge, memories, and views about oneself.