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1.1: The allocative inefficiency of a monopoly is called...
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1.1.1: The allocative inefficiency of a monopoly is called...
In a monopoly, resources are not allocated efficiently, leading to a deadweight loss or excess burden on society. This means the price is higher and quantity is lower than what would be socially optimal.
The correct option is A.
1.1.2: An example of a merit good is...
Merit goods are goods or services that are considered beneficial for society and would be under-consumed if left to the free market. Governments often subsidize or provide them. Education is a classic example of a merit good.
The correct option is A.
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