The source of the inefficient use of artificially scarce goods is similar to the source of inefficiencies created by:
A)externalities.an
B)oligopoly.
C)price discrimination.
D)a natural monopoly.

Question

Quizplus · Accepted Answer

A natural monopoly, like artificially scarce goods, leads to inefficiencies due to the lack of competition and the ability to set prices above marginal cost, resulting in underconsumption.

The Source of the Inefficient Use of Artificially Scarce Goods