Which of the following brings only an increase in the quantity demanded of a good?
A) a decrease in income, assuming the good is an inferior good
B) a rise in the price of a substitute good
C) a fall in the price of the good itself
D) an expectation that the good's price will rise in the future
E) a decrease in income, assuming the good is a normal good
C
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Compared to a single-price monopoly, when a monopoly can perfectly price discriminate, the deadweight loss
A) increases. B) decreases. C) remains the same. D) becomes infinite. E) probably changes, but more information is needed to determine if it increases, decreases, or remains constant.
A monopoly misallocates resources when it
A) restricts output so that the marginal benefit of the last unit sold exceeds the marginal social cost of producing the good. B) makes an above-normal profit. C) sells the same product to different groups of customers at different prices. D) exploits scale economies.
The fraction of each added dollar of disposable income that is used for consumption is called the:
a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).
The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the (i) average revenue curve. (ii) marginal cost curve. (iii) demand curve
a. (i) only b. (i) and (ii) only c. (i) and (iii) only d. (iii) only