A monopoly is the single buyer of some good or service. a firm that has control
ID: 1160331 • Letter: A
Question
A monopoly is
the single buyer of some good or service.
a firm that has control of a market because it is the only seller.
a firm that creates enormous external costs.
a firm that faces intense competition.
A quantity less than the equilibrium quantity in a competitive market is inefficient because
the marginal benefit of another unit is greater than its marginal cost.
too much of the good is being produced.
the marginal cost of another unit is greater than its marginal benefit.
the marginal benefit of another unit is not equal to zero.
the marginal benefit is not maximized.
a cost of producing a good or service.
the single buyer of some good or service.
a firm that has control of a market because it is the only seller.
a firm that creates enormous external costs.
a firm that faces intense competition.
A quantity less than the equilibrium quantity in a competitive market is inefficient because
the marginal benefit of another unit is greater than its marginal cost.
too much of the good is being produced.
the marginal cost of another unit is greater than its marginal benefit.
the marginal benefit of another unit is not equal to zero.
the marginal benefit is not maximized.
a cost of producing a good or service.
Explanation / Answer
A monopoly is where one seller and many buyers appear. So the seller has all market power and is a price maker. Therefore the second option is correct.
In a competitive market when quantity is produced less than the equilibrium is called market is inefficient because all transaction that could benefit market participants have not taken place that is MB is not maximized. The last option is correct.
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