The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, producer surplus equals
A) A + B + C + D + E.
B) D + E.
C) E.
D) zero.
A
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Which of the following would be an example of contractionary fiscal policy?
A. Congress enacts economic sanctions on North Korea. B. Congress increases the corporate tax rate by 3 percent. C. Congress decreases the rate for the top income tax bracket by 5 percent. D. Congress increases infrastructure spending by 2 percent.
When 5 units of labor are employed, total product is 9 units; when 6 units of labor are employed, total product is 11 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 6th unit of labor?
A) $10 B) $5 C) $15 D) $55
During an economic contraction, housing and stock prices generally
a. fall, leading to a reduction in aggregate demand. b. fall, leading to an increase in aggregate demand. c. rise, leading to a reduction in aggregate demand. d. rise, leading to an increase in aggregate demand.
To understand how the price of a good is determined in a free market, one must account for the desires of:
A. sellers. B. buyers. C. governmental agencies. D. buyers and sellers.