Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 15 - Part V - Monopoly - Quick Check Multiple Choice - Page 324: 5

Answer

b) some potential consumers who forgo buying the good value it more than its marginal cost

Work Step by Step

When a monopolist sets the price of a good, they set the price of the good above the efficient price. (The efficient price is the price determined by the efficient quantity.) The monopolist's price forces some consumers to value the good at more than the good's marginal cost but less than the monopolist's price.
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