Asked by Adrian Lukmanto on May 01, 2024
Verified
Other things equal,in which of the following cases would economic profit be the greatest?
A) An unregulated monopolist that is able to engage in price discrimination.
B) An unregulated,nondiscriminating monopolist.
C) A regulated monopolist charging a price equal to average total cost.
D) A regulated monopolist charging a price equal to marginal cost.
Unregulated Monopolist
A monopoly that operates without regulatory oversight, setting prices and output levels without external control.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, representing the financial gain in excess of the opportunity costs of resources used.
- Evaluate the impact of monopolistic market structures on resource allocation and market efficiency.
Verified Answer
Learning Objectives
- Evaluate the impact of monopolistic market structures on resource allocation and market efficiency.
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