The Economic Problem with Monopolistic Industries Is That

question 128

Multiple Choice

The economic problem with monopolistic industries is that:

• A) they charge too high of prices.
• B) not enough resources move into the industry, leaving output too low.
• C) profits are too low.
• D) profits are too high.

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Definitions:

Appreciates

An increase in the value of an asset or currency over time, often due to factors like demand, inflation, or changes in interest rates.

Appreciates

Increases in value or worth, often used in the context of financial investments or property.

Price Level

The mean cost of all products and services available in the market across different sectors of the economy.

Japanese Yen

The official currency of Japan, symbolized as ¥ and known in currency markets as JPY.