The economist's objections to monopoly rest on which of the following grounds?
A. There is a transfer of income from consumers to the monopolist
B. There is welfare loss as resources tend to be misallocated under monopoly
C. Both A and B are incorrect
D. Both A and B are correct
Answer: Option D
Solution(By Examveda Team)
The economist's objections to monopoly rest on the following grounds that there is a transfer of income from consumers to the monopolist and there is welfare loss as resources tend to be misallocated under monopoly.Join The Discussion
Comments ( 1 )
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
____________ is a monopoly firm whose behavior is overseen by a government entity.