Because a monopoly will produce less of a good than a competitive market will, welfare is always greater under monopoly than under competition in the presence of a negative externality
Indicate whether the statement is true or false
False. If monopoly produces more than the social optimum, then it does generate greater welfare than competition. If monopoly produces less than the social optimum, then it may or may not generate greater welfare.
You might also like to view...
Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, Wrangler, and many others are all producers of jeans. J Brand jeans sell for $200 a pair
Suppose at the short-run profit maximizing quantity, J Brand's ATC was $180 and AVC was $100, which statement is TRUE? A) J Brand will produce in the short and long run. B) J Brand will produce in the short run but go out of business in the long run. C) J Brand will shut down in the short run and go out of business in the long run. D) J Brand will produce in the short run and shut down in the long run.
The quantity of labor supplied is dependent on the size of the working population and the wage rate
a. True b. False Indicate whether the statement is true or false
In the long run, new firms can enter an industry and so the supply elasticity tends to be:
A. more elastic than in the short run. B. less elastic than in the short run. C. perfectly inelastic. D. perfectly elastic.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's explicit costs are ________, and Pat's implicit costs are ________.
A. $16,000; $51,000 B. $15,000; $36,000 C. $35,000; $16,000 D. $16,000; $35,000