Market power and market inefficiency

This is socially undesirable for a monopolist to produce where the price exceeds to marginal social cost [P > MSC] since: (w) resources are allocated inefficiently since too small is produced. (x) too many resources are used and production is excessive. (y) at P > MSC, prices do not measure social benefits. (z) society's advantage, as measured from MSC, exceeds the price consumers pay.

Hey friends please give your opinion for the problem of Economics that is given above.

View Complete Question

Related Questions in Microeconomics

Q : Marginal revenue when market price

When the market price of a good is $50 and a purely competitive firm raises its output from 20 units, marginal revenue of it is: (w) $50. (x) $1000. (y) $2.50. (z) $0.40. I need a good answer on th

Q : Managerial economics and good business

please find the attached file (project) and qoute for it. minimus 7 pages required.

Q : Internet connection system in Short Run

The resource most probable to be viewed as the fixed in short run by a firm which operates a cable TV and Internet connection system would be: (1) Unskilled workers who bury the cable. (2) The personal computer (3) Satellite dishes that it has leased to the customers.

Q : Total revenue raised by output

A firm’s total revenue can definitely be raised by decreasing its output when: (1) its supply curve is perfectly price inelastic. (2) the demand curve for its output is relatively income inelastic. (3) this is currently losing money each period.

Q : When is demand more elastic at a price

Along this demonstrated in below demand curve for DVD games, demand is more elastic at a price of: (w) $10. (x) $6. (y) $1. (z) zero.

Q : Law of demand is price in the law of

is price in the law of demand an absolute or relative price

Q : Marginal costs with maximizing profit

Pure competitors generate where P = MC since this: (w) is the best price and output for society. (x) maximizes combined consumer and producer surpluses. (y) is consistent along with maximizing profit at a specified price. (z) conforms to government re

Q : Market price in the Law of Equal

The marginal utility [that is, additional jollies derived from the final unit consumed] of each and every of the specific goods you purchase regularly is probably most intimately correlated with each and every good’s: (1) Consumer surplus. (2) Market price. (3)

Q : Increasing cost industry in long run

When curve C reflects the long run supply curve as in demonstrated figure for this industry, in that case this is a/an: (w) decreasing cost industry. (x) increasing cost industry. (y) constant cost industry. (z) diseconomies of scale industry.

Q : Most perfectly price inelasticity in

In illustrated graph below, supply is mostly perfectly price inelastic at: (i) point a. (ii) point b. (iii) point c. (iv) point d.

Discover Q & A

Leading Solution Library

Avail More Than 1455449 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1943772
Asked

3,689

Active Tutors

1455449

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment