/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q23. Is a monopolist allocatively eff... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 9: Q23. (page 233)

Is a monopolist allocatively efficient? Why or why not?

Short Answer

Expert verified

Monopolists are not allocatively proficient, on the grounds that they don't deliver at the amount where P = MC.

Step by step solution

01

definition 

Monopolist is the person who overwhelms and controls the market for a particular decent or administration since he is the spirit merchant of a ware and has no nearby substitute. For eg : Railways

02

Explanation

Monopolists don't create at the amount where P = MC. Accordingly, monopolists produce less, at a higher normal expense, and charge a greater cost than would a mix of firms in an entirely aggressive industry. Monopolists likewise may need motivations for advancement, since they need not dread passage, for that reason they are not allocative effective.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Imagine that you are managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10%less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?

How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive firm?

In what sense is a natural monopoly "natural"?

How does the demand curve perceived by a monopolist compare with the market demand curve?

If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.