Which creates a larger deadweight loss, perfect competition or a single-price monopoly?
What will be an ideal response?
The single-price monopoly creates a larger deadweight loss because perfect competition does not create a deadweight loss.
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The circular flow model primarily studies how decisions are made by what two groups?
a. consumers and suppliers b. households and firms c. government and households d. government and firms
The dollar is said to depreciate against the euro if
a. the exchange rate falls. Other things the same, it will cost fewer euros to buy U.S. goods. b. the exchange rate falls. Other things the same, it will cost more euros to buy U.S. goods. c. the exchange rate rises. Other things the same, it will cost fewer euros to buy U.S. goods. d. the exchange rate rises. Other things the same, it will cost more euros to buy U.S. goods.
Which of the following causes a good to be more elastic?
a. Fewer suppliers of the good. b. Fewer substitutes. c. Greater necessity. d. Greater percentage of income
The slope of a straight line:
A. is constant. B. is negative. C. is zero. D. changes along the curve.