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Asked by Samdup Dolma on Jun 10, 2024

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Because of their large-scale level of production,pure monopolists overallocate resources to their industry by producing beyond the P = MC output.

Pure Monopolists

A single seller in a market with no close substitutes for its product, giving it significant control over price.

Large-Scale Production

The manufacturing of large quantities of a product quickly and efficiently, benefiting from economies of scale.

Overallocate Resources

The situation in which too many resources are dedicated to a specific task or sector, potentially leading to inefficiency and waste.

  • Assess the influence of monopoly market structures on the distribution of resources and the efficiency of markets.
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AM
Amina MustajbasicJun 16, 2024
Final Answer :
False
Explanation :
Pure monopolists typically underallocate resources to their industry by producing less than the socially optimal output level where P = MC, leading to a deadweight loss in the economy.

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