Asked by
Joemarc Vecino
on Nov 16, 2024
Verified
Monopolies are socially inefficient because the price they charge is
A) equal to marginal revenue.
B) above marginal cost.
C) equal to demand.
D) above demand.
Marginal Revenue
Marginal revenue is the additional income received from selling one more unit of a product or service.
Marginal Cost
Marginal cost is the increase or decrease in the total cost of producing one additional unit of a good or service.
- Assess the societal benefits and drawbacks attributed to the operation of monopolies.
Verified Answer
SS
Learning Objectives
- Assess the societal benefits and drawbacks attributed to the operation of monopolies.