Gwhich of the following statements is a major criticism of a pure monopoly as a source of allocative inefficiency? rev: 05_15_2018 multiple choice a pure monopoly fails to expand output to the level where the price of an additional unit is just equal to its marginal cost. a pure monopoly has no incentive to produce efficiently, because even the inefficient pure monopoly can be assured of economic profits. a pure monopoly will always generate economic profit, and that means that prices are too high. a pure monopoly has an unfair advantage because it can purchase labor at a lower price than perfectly competitive firms can.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?