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Which of the Following Is a Possible Outcome If a Monopolist

Question 22

Multiple Choice

Which of the following is a possible outcome if a monopolist is allowed to maximize profit?


A) The equilibrium price-output combination is inefficient.
B) Consumers pay a price that is equal to the marginal cost of production.
C) Consumer surplus is more than producer surplus.
D) The equilibrium price-output combination is socially optimal.
E) The quantity of output produced by the monopolist is larger than the socially optimal level of output.

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