Asked by
Christopher Mergen
on Oct 12, 2024
Verified
Which statement is true?
A) The monopolist produces at an output level that is at peak efficiency.
B) The monopolist is guaranteed to make a profit because they have no competition.
C) The monopolist can get preferential tax breaks because of its political influence.
D) Overall,monopolists are very efficient.
Peak Efficiency
The highest level of operational productivity or effectiveness where resources are utilized in the most optimal way.
Preferential Tax Breaks
These are specific tax provisions that benefit certain activities, industries, or groups, reducing their tax burden compared to others.
Political Influence
The impact that individuals, groups, or organizations have on political decisions, policies, and the legislative process.
- Identify the dynamics within a monopoly, including methods used by monopolies to create and sustain their market dominance.
- Comprehend the association between monopolies, market structures, and economic efficiency.
Verified Answer
MH
Learning Objectives
- Identify the dynamics within a monopoly, including methods used by monopolies to create and sustain their market dominance.
- Comprehend the association between monopolies, market structures, and economic efficiency.