Compared to the results in a perfectly competitive market, a monopoly does which of the following?


It charges a higher price.


It charges a price greater than the marginal cost.


It produces less output.


All of the above


None of the above


"X-inefficiency" refers to the idea that


government restrictions on competition create a monopoly, which results in inefficiency.


the cost of rent-seeking activity should be added to the welfare cost of monopoly.


Generation X is less efficient due to a lack of competitive spirit.


a lack of competitive pressure results in a monopoly not keeping its costs down to the lowest possible level.


price discrimination results in inefficiently low cross-elasticities of demand.


Firms in which of the following market structures can engage in price discrimination?






monopolistic competition


All of the above


None of the above


Monopolistic competition and perfect competition are in all of the following ways except


Barriers to entry are low in both


There are many firms in both


Firms in both produce the output level where MR=MC


Nonprice competition is important in both


To get rid of excess capacity from the monopolistic competition in the long run, what would have to be given up?


Free entry and exit.


economic rent


resource allocative efficiency


differentiated product


productive efficiency

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019

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