[Solved] Which of the Following Statements Is False If the Government
Question 131
Multiple Choice
Question 131Which of the following statements is false if the government nationalizes an existing monopoly firm?
A)The government usually buys out the owners of the firm and operates it as a crown corporation.
B)A nationalized monopoly may or may not be operated to make a profit.
C)There is no guarantee that a nationalized monopoly will be more efficient because it is owned by the government.
D)A nationalized monopoly can be expected to always charge the socially optimum price.
Explore answers and other related questions 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.
Business
Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions
Related Questions
- Q126:
-Refer to the graph above.Area B represents:
A)the loss of surplus by consumers resulting from a monopoly.
B)the cost to society of increasing output from Qm to Qc.
C)consumer surplus redistributed to the monopolist.
D)the loss of surplus by producers resulting from a monopoly. - Q127:
-If the monopoly firm maximizes profit,consumers will pay:
A)$2.00 per unit and consumer surplus will be $45.
B)$2.50 per unit and consumer surplus will be $18.75.
C)$3.50 per unit and consumer surplus will be $11.25.
D)$3.50 per unit and consumer surplus will be $22.5. - Q128:
-Refer to the graph above.The loss of surplus to consumers resulting from monopoly is:
A)$11.25.
B)$20.
C)$31.25
D)$42.5.
- Q129:
-Refer to the graph above.Producer surplus that is lost to society as a result of monopoly is:
A)$2.5.
B)$5.
C)$15.625.
D)$16.875.
- Q130:
-Refer to the graph above.If the monopoly firm maximizes profit,it will produce:
A)15 units of output and producer surplus will be $28.125.
B)15 units of output and producer surplus will be $16.875.
C)25 units of output and producer surplus will be $15.625.
D)30 units of output and producer surplus will be $60.
- Q132:A monopolist is free to charge any price it wishes for its product.
- Q133:A patent is an example of a barrier to entry.
- Q134:At any given output the marginal revenue of the monopolist may be equal to,greater than,or less than its average revenue.
- Q135:A natural monopoly exists when a single producer is able to produce at a lower cost than competing firms could.
- Q136:At the profit-maximizing output of the monopolist,the price will be equal to the marginal cost.
Get Free Access Now!
Upload
Get free access by uploading any valuable academic documents
Invite
Invite your friends by sharing your unique referral link, and get a free access
Invite a friend
Join Us
Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access
Contact Us
© 2020-2022 Quizplus LLC. All Rights Reserved