Monopolies Misallocate Resources Because

question 316

Multiple Choice

Monopolies misallocate resources because

• A) price does not equal marginal cost.
• B) price does not equal average variable cost.
• C) marginal cost does not equal average total cost.
• D) profits are usually positive.

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Definitions:

Max Weber

Max Weber was a German sociologist, philosopher, and political economist, whose ideas influenced social theory, social research, and the discipline of sociology itself.

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A small group of people who hold disproportionate amounts of power in society, often through wealth, political influence, or military control.

American Society

Describes the social structure, culture, and community life specific to the United States of America.

Military Elite

A group within the armed forces that holds considerable power, often characterized by higher status, skills, or strategic importance.