The Price Charged by a Monopolist Is Socially Inefficient Because

question 144

Multiple Choice

The price charged by a monopolist is socially inefficient because the price

• A) exceeds the true marginal cost of the resources used.
• B) is less than the opportunity cost of the resources used.
• C) puts the monopolist into a higher tax bracket.
• D) is too low.

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Definitions:

Infinite Number

A concept in mathematics that describes a quantity without bounds or limit.

T-statistic

A statistic used in hypothesis testing, computed as the difference between the sample mean and the hypothesized population mean, divided by the standard error of the mean.

Z-score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean value.