If a Social Planner Were Running a Monopoly, That Planner

question 339

Multiple Choice

If a social planner were running a monopoly, that planner could achieve an efficient outcome by charging the price that is determined by the

• A)minimum point on the average total cost curve.
• B)intersection of the average total cost curve and the demand curve.
• C)intersection of the marginal cost curve and the demand curve.
• D)intersection of the marginal cost curve and the marginal revenue curve.

---

Definitions:

Resource Extraction

The process of retrieving raw materials from the Earth for human use, such as mining, drilling, or harvesting.

Profit-Maximizing Firms

Businesses that aim to achieve the highest possible profit from their operations.

Market Failure

The inability of a market to bring about the allocation of resources that best satisfies the wants of society; in particular, the overallocation or underallocation of resources to the production.

Property Rights

Legal rights to possess, use, and dispose of assets such as land, buildings, goods, or intellectual property.