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At its profit-maximizing output, a pure non-discriminating monopolist achieves: 

A. neither productive efficiency nor allocative efficiency.
B. both productive efficiency and allocative efficiency.
C. productive efficiency but not allocative efficiency.
D. allocative efficiency but not productive efficiency.

 

 

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Chika Ilonah
Chika IlonahLv10
20 Oct 2020

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Related questions

In a monopolistically competitive market, the rule for maximizing profit is to set MR=MC, which means

Price is higher than marginal revenue

Price is equal to marginal cost

Price is equal to marginal revenue

Price is lower than marginal revenue

Perfect competition displays________________________ because the social benefits of additional production, as measured by the price that people are willing to pay, are in balance with the _____________________to society of that production

Economic efficiency; marginal revenues

Allocative efficiency; marginal costs

Economic efficiency; total revenues

Allocative efficiency; total costs

How can parties who find themselves in a prisoners dilemma situation avoid the undesired outcome and cooperate with each other

Find effective ways to penalize firms who do not cooperate

Sign legally enforceable contracts setting out their mutual agreement to act like a monopoly

One oligopoly can physically beat up another oligopoly

By seeking alternatives to create pressure for members to keep output up and prices up

In the framework of an oligopoly, what strategy can work like a silent form of cooperation

Always match other cartel firms� price cuts, but don�t match price increases

Immediately match price increase

Legally enforcement agreements

1.Which of the following can be thought of as an adjustment for the risks involved with respect to the cost of a firm acquiring financial capital?

a.Cost of financial capital paid from firm

b.Higher retained earnings from past profits

c.Tax credits for physical capital investments

d.Imposition of hurdle rates of interest

2.If a firm is producing so that the point chosen along the production possibility frontier is socially preferred, then that firm is said to have reached its

a)minimum price efficiency

b)utility-maximizing efficiency

c)allocative efficiency

d)productive efficiency

3.When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______________ of investing in physical capital.

a.Typical hurdle rate

b.Hurdle rate premium

c.Degree of risk

d.Opportunity cost

4.Deregulation occurs when a government eliminates or scales back rules relating to all but one of the following. Which one is it?

a.Conditions of entry in a certain industry

b.Natural monopoly

c.Prices that can be charged

d.Quantities that can be produced

5.A natural monopoly occurs when the quantity demanded is the minimum quantity it takes to be at the bottom of the long-run average cost curve

a.Greater than

b.Less than

c.Equal to

d. a or c above

6. The demand curve perceived by a perfectly competitive firm

a.Shows that such a firm is a price-maker

b.Shows economies of scale over a large range of output

c.Is horizontal

d. All of the above

21)

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

22)

"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.

23)

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

 

monopoly
 

oligopoly
 

monopolistic competition
 

All of the above
 

None of the above

24)

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

25)

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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