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

Question

Quizplus · Accepted Answer

A natural monopoly creates inefficiencies due to its ability to restrict output and raise prices, similar to artificially scarce goods where access is limited despite low marginal costs.

The Source of Inefficiency in the Use of Artificially Scarce