If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. the consumer surplus is greater than in a competitive equilibrium.
B. the price is set inefficiently high.
C. the price is set below the competitive equilibrium price.
D. the market is efficient.
B. the price is set inefficiently high.
You might also like to view...
Describe how the euro was created. What are the benefits of the monetary union? What are the costs?
What will be an ideal response?
What is the largest reason for people being unemployed?
a. New entrants b. Re-entrants c. Job losers d. Job leavers
If the Federal Reserve sells $1,000 in bonds and, as a result, the money supply decreases by $2,500, what is the required reserve ratio?
a. 0.4 b. 2.5 c. 0.5 d. 0.1 e. 0.2
A firm can use 5 workers and 10 machines, 7 workers and 9 machines, or 8 workers and 9 machines to produce four cars. If each worker costs $200 and each machine is rented for $50, the economically efficient input combination is:
A. 8 workers and 9 machines. B. 7 workers and 9 machines. C. 5 workers and 10 machines. D. 12 workers and 19 machines.