If There Is a Sole Producer of a Good,and He

question 114

Multiple Choice

If there is a sole producer of a good,and he faces no threat of competition,it is likely that:

• A) the consumer surplus is greater than in a competitive equilibrium.
• B) the price is set inefficiently high.
• C) the price is set below the competitive equilibrium price.
• D) the market is efficient.

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Definitions:

Empirical Economics

The collection and use of data to test economic theories.

Regression Analysis

A statistical technique used to estimate the relationships among variables, often used for prediction and forecasting.

P-value

A statistical metric that helps determine the significance of results, indicating the probability of observing the given data if the null hypothesis is true.

Statistically Significant

A determination that a relationship between two or more variables is caused by something other than chance.