Author Question: When comparing a single-price monopoly to a perfectly competitive market with the same costs A) ... (Read 122 times)

natalie2426 · **on:** Jun 29, 2018

When comparing a single-price monopoly to a perfectly competitive market with the same costs

A) both the monopoly's output and price are lower than the perfectly competitive market's output and price.
B) both the monopoly's output and price are higher than the perfectly competitive market's output and price.
C) the monopoly's output is higher and the monopoly's price is lower than the perfectly competitive market's output and price.
D) the monopoly's output is smaller and the monopoly's price is higher than the perfectly competitive market's output and price.

Question 2

Keeping in mind the Coase theorem, in the figure above, if the pesticide factories own the lake, the market does what?

A) overproduces 120 tons of pesticide
B) underproduces 120 tons of pesticide
C) overproduces 60 tons of pesticide
D) produces the efficient quantity of pesticide