Suppose that the market for steel is shown in the above figure. Is social welfare greater under monopoly or under competition?
What will be an ideal response?
Under competition, the deadweight loss equals area C. To find the monopoly outcome, draw the MR curve for the monopoly that has the same vertical intercept as the demand curve but is twice as steep. Where MR = MCp determines the level of output the monopoly produces. This output is greater than 50 but less than 100. Social welfare is therefore greater under monopoly, since the monopoly quantity is closer to the socially optimal quantity than the competitive quantity.
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Which of the following is most likely an example of specialization?
a. People work on an assembly line. b. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. c. Only those with medical degrees qualify to become doctors. d. A family decides to grow their own crops.
Opponents of the minimum wage point out that the minimum wage
a. encourages teenagers to drop out of school. b. prevents some workers from getting needed on-the-job training. c. contributes to the problem of unemployment. d. All of the above are correct.
Job analysis is typically conducted by _____.
A. experienced job incumbents B. HR specialist C. HR generalists and supervisors D. Supervisors and experienced workers
Suppose that there are five firms in a market, each controlling 20% of the market. The HHI would equal:
A. 10. B. 100. C. 1,000. D. 2,000.