Author Question: A monopoly is inefficient because: a. consumers are forced to pay higher prices for products. b. ... (Read 59 times)

viki · **on:** Jun 30, 2018

A monopoly is inefficient because:
a. consumers are forced to pay higher prices for products.
b. firms are able to earn economic profits.
c. the cost of increased production is less than the value that society places on it.
d. price exceeds marginal revenue.

Question 2

The infant industry argument is that:
a. those industries that produce products for infants should be protected.
b. developing industries should be allowed to face foreign competition.
c. protectionism should be used to create a level playing field for the domestic firms to compete with foreign firms.
d. protectionism promotes complete specialization in the country on the basis of comparative advantage.
e. new industries should be protected from foreign competition until they have had adequate time to develop.