Question

Jerry's Phone Service is a monopoly. Select the items that describe the price and quantity chosen by Jerry.

will result in efficient use of resources
will result in equilibrium price
will maximize profits
will cause shortage of goods

Answer 1

The right answer for the question that is being asked and shown above is that: "will result in efficient use of resources." Jerry's Phone Service is a monopoly. the price and quantity chosen by Jerry will result in efficient use of resources

Answer 2

A monopoly is a market structure where one seller has a unique product that is on the market. There is no competition and there are no perfect substitutes from the product. The seller holds all of the power in pricing the item due to no competition. Based on the definition the price and quantity chosen by Jerry will efficiently use all of the resources.