A single-price monopoly is ______
A. inefficient because it converts consumer surplus to producer surplus
B. inefficient because it produces too small an output and creates a deadweight loss
C. efficient because buyers are paying a price equal to their willingness to pay
D. efficient because it is the only producer of the good
B The monopoly creates inefficiency by producing less than a competitive market to raise its price.
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In the figure above, if there is no Ricardo-Barro effect, the government has a budget ________ because the ________
A) surplus of 0.2 trillion; SLF curve lies to the right of the PSLF curve. B) deficit of 0.2 trillion; SLF curve lies to the right of the PSLF curve. C) deficit of 0.4 trillion; SLF curve shows a smaller quantity of LF than the PSLF curve. D) surplus of 0.4 trillion; SLF curve shows a larger quantity of LF than the PSLF curve. E) surplus of -0.2 trillion; SLF curve lies to the right of the PSLF curve.
If a person who generates a negative externality incorporates into his or her private cost-benefit calculations the effects that this externality will have on third parties, the externality has been
A. substituted. B. accommodated. C. compounded. D. internalized.
A simultaneous increase in both the supply of and the demand for vitamin water would cause an increase in the equilibrium quantity of vitamin water.
Answer the following statement true (T) or false (F)
Every president who has held office since the General Agreement on Tariffs and Trade was signed has
A. argued for free-trade policies, but only Kennedy and Carter successfully resisted all calls for protection from various sectors of the economy. B. argued for free-trade policies, yet each one has used his powers to protect various sectors of the economy. C. argued for free-trade policies, but only Eisenhower and Reagan successfully resisted all calls for protection from various sectors of the economy. D. argued that certain domestic industries deserve protection, yet each one has been reluctant to use his powers to protect individual sectors of the economy.