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.

---

Definitions:

Competitive Advantage

Conditions or aspects that confer on a business a superior or more advantageous situation compared to competitors.

Customized Products

Goods or services specifically tailored to meet the unique preferences or needs of individual customers.

High Quality Standards

The maintenance of excellence and superior standards in products or services.

Breakthrough Innovation

A significant and revolutionary discovery or development that drastically advances the field or industry.