Monopoly power in a market causes:
A. producers to worry about competition.
B. monopolists to earn economic profits of zero.
C. market surplus to be lost.
D. consumers to gain.
Answer: C
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Suppose consumers save 17 percent of their incomes. If the government collects 10 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer
A) decrease by $1.70 B) increase by $10.17 C) decrease by $8.30 D) increase by $8.30
A consumer's budget line will shift to the right in a parallel manner if:
a. the price of the good on the X-axis decreases. b. the price of the good on the Y-axis increases. c. the consumer's income increases d. the consumer's income decreases.
Economies of scale exist whenever long-run average costs:
A. decrease as output is increased. B. remain constant as output is increased. C. increase as output is increased. D. None of the statements is correct.
Exhibit 4-10 Supply and demand data for apricots Bushels demandedper month Price perbushel Bushels suppliedper month 50 $5 80 55 4 75 60 3 70 65 2 65 70 1 55 Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots. B. Buyers would not want to purchase all of the apricots that are supplied. C. There would be a surplus of apricots. D. Farmers would reduce the number of acres allocated to the growing of apricots.