MONOPOLY

Positive externalities do not cause welfare losses so the government does not need to intervene.

• TRUE

• FALSE

Positive externalities are always more beneficial to society than negative externalities.

• FALSE

• TRUE

When a positive externality occurs, the market output is greater than the efficient output.

• TRUE

• FALSE

Monopolies damage social welfare so the government needs to intervene.

• TRUE

• FALSE

Since monopolies cause losses in social welfare, the Government needs policies to eliminate monopolies.

• FALSE

• TRUE

Positive externality subsidies bring private interests to the level of social benefits.

• TRUE

• FALSE

Monopolies can sell products at whatever price they desire.

• TRUE

• FALSE

Averaging cost pricing in the case of a monopoly would eliminate the monopoly's super-profits.

• TRUE

• FALSE

To overcome negative externalities, the method of using discharge fees is better than the method of taxation. "is a factual statement.

• TRUE

• FALSE

The externality causes a loss in social welfare because the enterprise that causes the externality has produced the level of output at which the marginal social benefit is less than the marginal social cost.

• TRUE

• FALSE