A Monopoly Sets a Market Price That Is Higher Than

question 16

Multiple Choice

A monopoly sets a market price that is higher than the marginal cost of production. This fact implies that a monopoly's allocation of resources is:

• A) unfair.
• B) inefficient.
• C) discriminatory.
• D) excessive.

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Definitions:

Labour Legislation

Laws and statutes that regulate the relations between workers, employers, and unions, including aspects like working conditions, wages, and dispute resolutions.

Arbitration

A method of dispute resolution where a neutral third party (the arbitrator) makes a decision that is usually binding on all parties involved.

Certification

The process of officially recognizing someone or something as having certain qualifications or standards.

Certification Process

A process under labour legislation whereby a trade union acquires bargaining rights and is designated as the exclusive bargaining representative of a unit of employees.