Author Question: The figure above shows that monopoly is ________ because it produces a level of output at which ... (Read 38 times)

jon_i · **on:** Jun 29, 2018

The figure above shows that monopoly is ________ because it produces a level of output at which ________.

A) inefficient; marginal benefit equals marginal cost
B) efficient; marginal benefit equals marginal cost
C) efficient; marginal benefit exceeds marginal cost
D) inefficient; marginal benefit exceeds marginal cost
E) efficient; producer surplus is maximized

Question 2

The market process will likely fail to fully coordinate supply and demand if transaction costs are

A) non-existent.
B) significant.
C) locally perverse.
D) inconsequential.