Author Question: One possible benefit of a monopoly is: a. a more efficient allocation of resources; only one firm ... (Read 195 times)

strangeaffliction · **on:** Jul 1, 2018

One possible benefit of a monopoly is:
a. a more efficient allocation of resources; only one firm is needed to supply quantity demanded.
b. greater incentives for research due to long-run positive economic profits.
c. the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor.
d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.

Question 2

The discount rate utilized in public sector budgeting performs the functions of:
a. allocating funds between the public and private sectors
b. allocating funds between present consumption and investment (i.e., future consumption)
c. allocating funds between debt and equity securities
d. a and b only
e. none of the above