Why Are the Estimates of the Deadweight Loss of Monopoly

question 68

Multiple Choice

Why are the estimates of the deadweight loss of monopoly not large?

• A)Monopolized sectors of the economy are large relative to the whole economy.
• B)Pure monopolies are not pervasive in market economies.
• C)Monopolies tend to operate in markets with below average prices.
• D)Although consumer surplus falls,total surplus actually increases in a monopoly.

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Definitions:

Marsha Linehan

A psychologist known for developing Dialectical Behavior Therapy (DBT), which is effective in treating borderline personality disorder and other mental health disorders.

Psychologist

A professional specializing in the science of behavior and mental processes, often involved in research, assessment, and therapy.

Central Controlling Context

The primary or dominant environment or set of circumstances that influences or regulates behavior or processes.

ACT

Acceptance and Commitment Therapy (ACT) is a form of psychotherapy that uses acceptance and mindfulness strategies, mixed in different ways with commitment and behavior-change strategies, to enhance psychological flexibility.