Which of the following markets will have the largest deadweight loss?

A) A market that consists of perfectly competitive firms.
B) A market that consists of a single-price monopoly.
C) A market that consists of a perfect price discriminating monopoly.
D) None of the above. There is no deadweight loss as long as firms produce at the level of output where marginal revenue equals marginal cost.


B

Economics

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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.

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Which of the following macroeconomic variables is most dependent on whether the government pursues an active approach to policy or a passive approach to policy?

a. Aggregate supply b. Aggregate demand c. Money demand d. Money supply e. Interest rate

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Which of the following factors would be most likely to encourage capital formation in a less-developed nation?

What will be an ideal response?

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Ceteris paribus, based on the circular flow model, a spending injection results in:

A. A decrease in total income for consumers. B. An increase in total income for consumers. C. An increase in the MPS. D. A decrease in the MPS.

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