Question

Which of the following conditions could lead to an inefficient quantity of pretzels

being produced?

A) The existence of many producers of pretzels

B) The existence of many consumers of pretzels

C) The existence of a single producer and seller of pretzels

D) All of the above conditions could cause the actual quantity of pretzels to be an

inefficient quantity.

Using the table, what is the minimum prices that Fred is willing to accept to

supply 400 slices of pizza per month?

A) $3.50

B) $2.50

C) $3.00

D) $4.00

Answer 1

As we know that monopoly and monopsony are the two extreme forms of imperfect competition. Monpoly is a matket structure in which there is only one seller of the product with no close substitutes. While as monopsony is a market structure in which there is only one buyer of the product. Both of these lead to market inefficiency.

1). The correct option is (c).

The existence of a single producer and seller of pretzels.

2). The correct option is (b).

$2.50.

Fed is the central bank of the US. It sets the minimum price of the product, beyond this level pruce cannot fall.

Kindly comment me table data in comments.

Thanks!