The above figure shows the demand and marginal cost curves for a monopoly. Under monopoly, consumer surplus equals
A) a + b.
B) a + b + c.
C) a + b + c + d + e + f.
D) None of the above.
D
You might also like to view...
If a player has a strategy where one course of action outperforms all others no matter what other players do, that strategy is
A) a prisoner's dilemma. B) dominated. C) dominant. D) a winner.
Some analysts have argued that cost-benefit analysis does not take into account issues involving equity and is nothing more than an efficiency test. Do you agree with this statement?
What will be an ideal response?
A trade-off between unemployment and inflation is reflected in the
A. Phillips Curve. B. natural rate of unemployment. C. economic stability. D. nonaccelerating inflation rate of unemployment (NAIRU).
Which of the following statements is true of complementary goods and services?
a. Their production does not depend on the resource availability of a firm. b. Their demand patterns are in sync with other goods and services produced by a firm. c. They cannot use the excess capacity available during the off-season. d. They are produced to balance seasonal demand cycles.