The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
By how much would the consumer surplus fall after the formation of the cartel?
A. $5 billion
B. $50 billion
C. $15 billion
D. $20 billion
Answer: B
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According to the Application, in 1960 the Cuban government
A) did not allow people to sell or rent their homes. B) caused a large shortage of housing as a result of its policies. C) confiscated most housing in the country. D) all of the above.
It's as simple as this: Bankers hope to make profit by
a. holding people's money at low interest rates and lending it out at higher interest rates b. holding people's money at high interest rates and lending it out at lower interest rates c. charging for bank services such as check clearing and ATM services d. keeping excess reserves in case of a bank run e. charging people to use demand deposit accounts
Unemployment rates in the U.S. are generally:
a. higher than in Europe b. lower than in Europe c. about the same asin Europe d. there are no unemployed in Europe
In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars
a. True b. False Indicate whether the statement is true or false