A monopoly might produce less than the socially optimal amount of ...

[maegan_martin]

A monopoly might produce less than the socially optimal amount of pollution because
 
  A) it likes to be a good citizen.
  B) it sets price above marginal cost.
  C) it earns economic profit.
  D) it internalizes the external costs.

Question 2

Because a monopoly ignores external costs, it is possible that it will
 
  A) produce the socially optimal quantity of a good.
  B) produce more than the socially optimal quantity of a good.
  C) produce less than the socially optimal quantity of a good.
  D) All of the above.

[TheNamesImani]

Answer to Question 1

B

Answer to Question 2

D