In Contrast to a Monopoly Which Misallocates Resources by Restricting

question 6

Multiple Choice

In contrast to a monopoly which misallocates resources by restricting output and producing too little,government bureaus misallocate resources by _____.

• A)producing too little
• B)producing too much
• C)producing the right amount but charging nothing for the output
• D)producing zero

---

Definitions:

Minimum Points

The lowest scores or levels that must be achieved in a particular framework, often used in educational or competitive contexts.

Maximum Points

Refers to the highest value or peak point that can be achieved within a given set of parameters or conditions.

Total Economic Profit

The sum of accounting profit and economic profit, which measures the total earnings of a company after accounting for both explicit and implicit costs.

Profitable Level

The point at which the revenue from sales exceeds the costs involved in production or procurement.