With a monopolist's outcome, consumer surplus is:
A. higher than that of a competitive market.
B. lower than that of a competitive market.
C. the same as that of a competitive market.
D. Any of these is possible.
B. lower than that of a competitive market.
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Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles B) wheat C) fast food D) postage stamps
The market demand curve for a private good is the horizontal sum of individual consumer demand curves. In contrast, once a public good is produced, it is available to all consumers in an identical amount. Thus the market demand curve for a public good is the vertical sum of individual consumer demand curves
Indicate whether the statement is true or false
Refer to the accompanying figure. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?
A. They would lower their prices because at $45 there would be excess demand. B. They would all make a large profit because $45 is more than the equilibrium price. C. They would lower their prices because at $45 there would be excess supply. D. They would all just break even because $45 is their reservation price.
Analysis of macro policy and theory has resulted in of the following views?
A) There should be no constraints imposed on fiscal or monetary policy. B) A constitutional amendment is the most appropriate method to constrain fiscal policy. C) The heads of the central bank should be chosen by popular elections. D) all of the above E) none of the above