The area of economic profit shown in the above figure for the single-price monopolist is
A) bed.
B) P3P5fc.
C) 0P5fQ1.
D) 0P4eQ3.
B
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Suppose a price searcher faces the following demand curve: At $100, $90, $80, $70, and $60, the quantity demanded is 1, 2, 3, 4, and 5 units respectively. Which statement below is true?
A) Total revenue is $100. B) Total revenue is $190 when 2 units are sold. C) Total revenue is $400 when 5 units are sold. D) Marginal revenue is $80 when the price is $90.
Which of the following is an example of a disincentive?
A. Law enforcement creates a "Mug Shots" section online in order to discourage potential law breakers. B. You offer workers a bonus if they sell 100 widgets per month. C. A local gym offers a weight loss competition and the winner earns a free trip to Bermuda. D. Your professor offers to edit your paper before it's graded if you turn it in early.
One lesson learned from the bank panics of the early 1930's is:
A. the financial system will collapse without a lender of last resort. B. only the U.S. Treasury can be a true lender of last resort. C. the lender of last resort function almost guarantees that bank panics are a thing of the past. D. the mere existence of a lender of last resort will not keep the financial system from collapsing.
Employing a fixed-weight index like the Consumer Price Index to adjust a person's salary in response to inflation will overcompensate this person because doing so will allow this person to
A) buy the same bundle of goods as he did before the inflation. B) achieve a higher level of utility than he did before the inflation. C) achieve the same level of utility as before the inflation. D) buy more of all goods.