Inefficient output and price, few choices, and rent-seeking are all problems associated with:
A) externalities.
B) competitive markets.
C) monopolies.
D) scarcity.
E) trade.

Question

Quizplus · Accepted Answer

Monopolies typically have inefficient output and can charge high prices due to the lack of competition. Additionally, they may engage in rent-seeking behavior to maintain their monopoly position. Fewer choices are also common in a monopolistic market as there is no incentive for the firm to innovate or differentiate their products as there is no competition. Externalities and scarcity can be problems in any market structure, while trade is not necessarily associated with these specific problems.

Inefficient Output and Price, Few Choices, and Rent-Seeking Are All