A deadweight loss
A) is possible only if the good is underproduced but is not possible if the good is overproduced.
B) subtracts only from producer surplus.
C) is a loss to consumers and a gain to producers.
D) is a loss inflicted on the entire society.
D
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In the above figure, the marginal product of labor is zero at point
A) a. B) c. C) e. D) f.
Season ticket holders often purchase their tickets before a season begins. There is often a discount associated with season tickets. Why?
A) Buying season tickets entails risk, which consumers are willing to bear if they are compensated for doing so. B) Buying season tickets is a way of guaranteeing a supply of tickets for the secondary market. C) Selling season tickets entails greater transactions costs which team owners hope to avoid. D) Sports teams are local monopolies.
Transfer payments exactly replace the income lost because of taxes
a. True b. False Indicate whether the statement is true or false
To induce an increase in the quantity demanded of its product, a monopolist must reduce the
A. quality of its product and thereby generate a downward shift its ATC curve. B. price of its product and thereby generate a rightward movement along its demand curve. C. price of its product and thereby generate a rightward shift in its demand curve. D. quality of its product and thereby generate a downward movement along its ATC curve.