Which of the Following Is a Possible Outcome If a Monopolist

question 91

Multiple Choice

Which of the following is a possible outcome if a monopolist is allowed to maximize profit?

• A)The equilibrium price-output combination is inefficient.
• B)Consumers pay a price that is equal to the marginal cost of production.
• C)Consumer surplus is more than producer surplus.
• D)The equilibrium price-output combination is socially optimal.
• E)The quantity of output produced by the monopolist is larger than the socially optimal level of output.

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Definitions:

Ethical Standards

Guidelines for conduct that distinguish between acceptable and unacceptable behavior based on moral principles.

Partisanship

The strong support of a specific party, cause, or ideology, often leading to bias or reluctance to consider alternative viewpoints.

Umpire

An official who enforces the rules in a sport or game, ensuring fair play.

Adversarial System

This is a legal system in which two opposing parties present their cases to an impartial judge or jury, used primarily in common law countries.