Using the information in the figure and table below, which of the following statements is true?
a. Consumers are just as well off in all three markets.
b. Producers are just as well off in all three markets.
c. Deadweight loss is the same in all three markets.
d. Total welfare is lower in a monopoly that charges a single price than the monopoly in either perfect competition or perfect price discrimination.
d. Total welfare is lower in a monopoly that charges a single price than the monopoly in either perfect competition or perfect price discrimination.
You might also like to view...
An increase in the price level leads to ________ in the demand for money, and an increase in real GDP leads to ________ in the demand for money
A) no change; an increase B) a decrease; a decrease C) an increase; an increase D) a decrease; an increase E) an increase; a decrease
Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making both products. B) Lucy has a comparative advantage in making tricycles and James in making wagons. C) James has a comparative advantage in making both products. D) Lucy has a comparative advantage in making wagons and James in making tricycles.
Long-run aggregate supply shocks are a source of business cycle fluctuations in ________
A) traditional Keynesian and new Keynesian theory B) new Keynesian and real business cycle theory C) real business cycle and traditional Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory
A dominant firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms. B) the vertical difference between the market demand curve and the supply curve of the fringe firms. C) the demand curve left for the fringe firms after the dominant firm has determined an output level. D) None of the above.