Asked by
Cesar de la Torre
on Oct 12, 2024
Verified
Which of the following is true?
A) Monopolists never lose money regardless of short-run or long-run.
B) Monopolies can be overcome by market forces or by government action.
C) The most efficient output is found where MC and MR cross.
D) Legal barriers are the basis for monopoly in the automobile industry.
MC And MR Cross
The point where the marginal cost curve and the marginal revenue curve intersect, critical for determining the profit-maximizing output level in perfect competition.
Government Action
Measures and policies implemented by a government to influence the economy or address social issues.
Monopolies
A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to limited competition.
- Gain insight into the function and control of monopolies, including the ways they build and maintain their power in the market.
- Acquire insight into the linkage between market structures, monopolies, and the implications for economic efficiency.
- Evaluate the influence of judicial and economic factors in contesting monopolies.
Verified Answer
EN
Learning Objectives
- Gain insight into the function and control of monopolies, including the ways they build and maintain their power in the market.
- Acquire insight into the linkage between market structures, monopolies, and the implications for economic efficiency.
- Evaluate the influence of judicial and economic factors in contesting monopolies.