Which of the Following Statements Is Correct? Monopolies Are Socially

question 18

Multiple Choice

Which of the following statements is correct? Monopolies are socially inefficient because they i) charge a price above marginal cost.
Ii) produce too little output.
Iii) earn profits at the expense of consumers.
Iv) maximize the market's total surplus.

• A) iii) only
• B) iii) and iv) only
• C) i) and ii) only
• D) i), ii), iii), and iv)

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.