Which Is a Major Criticism of a Monopoly as a Source

question 101

Multiple Choice

Which is a major criticism of a monopoly as a source of allocative inefficiency?

• A) A monopolist fails to expand output to the level where the consumers' valuation of an additional unit is just equal to the monopolist's opportunity cost.
• B) A monopolist has no incentive to produce efficiently because even the inefficient monopolist can be assured of economic profits.
• C) A monopolist will always make profits and that means that prices are too high.
• D) A monopolist has an unfair advantage because it can purchase labor at a lower price than competitive firms in other industries.

Identify the advantages and disadvantages of the BAT model in forecasting cash needs and managing cash efficiently.

Analyze the impact of interest rates and the fixed cost of securities trades on cash management strategies.

Recognize the role of cash flow uncertainty and management's cash balance preferences in borrowing decisions.

Understand the foundational theories of motivation and emotion.

---

Definitions:

External Environment

The external environment includes all outside factors and influences that impact the operation of a business, such as economic, social, political, and technological factors.

Data

Information, statistics, or facts collected for analysis, reference, or calculation, often used to make decisions or inform policy.

Decision Makers

Individuals or groups responsible for making choices that affect an organization's strategies and operations.

Organizational Planning

The process of identifying an organization's immediate and long-term objectives and formulating and monitoring specific strategies to achieve them.