Monopoly Is a Prime Example of a Market Failure That

question 67

Multiple Choice

Monopoly is a prime example of a market failure that leaves potential Pareto improvements unexploited.This is demonstrated by the fact that

• A)monopolies produce public goods rather than private goods
• B)monopolies substitute excludability for rivalry
• C)monopolies substitute rivalry for excludability
• D)the price in a monopolized market is less than the marginal cost of production
• E)the price in a monopolized market exceeds the marginal cost of production

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Definitions:

Irrigation

The man-made process of providing water to soil to help cultivate plants and crops.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, known for its ability to disinfect and cause sunburn.

Dissolve

The process by which a substance integrates into a liquid, resulting in a homogeneous mixture or solution.