The profit-maximizing quantity of the monopolist compared to the perfectly competitive industry in the above figure are, respectively
A. Q1 and Q5.
B. Q1 and Q3.
C. Q1 and Q2.
D. Q2 and Q3.
Answer: B
You might also like to view...
Giffen goods have positively-sloped demand curves because they are
a. inferior goods with no substitution effect. b. normal goods with no substitution effect. c. inferior goods for which the substitution effect outweighs the income effect. d. inferior goods for which the income effect outweighs the substitution effect.
A recent study found that the price elasticity of demand for apples is -0.4. This year's early freeze in major apple growing regions has led to a 6% decrease in the apple production (supply) compared to last year. What is the implied change in price expected this year for apples (and assume no apple exports or changes in stocks)?
a. Decrease by 3% b. Decrease by 15% c. Decrease by 24% d. Increase by 15% e. Increase by 24%
In the presence of no externalities,
A) social marginal cost exceeds private marginal cost. B) social marginal cost is less than private marginal cost. C) social marginal cost equals private marginal cost. D) social marginal cost and private marginal cost cannot be compared.
For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances b. Individuals most likely to default are the ones most likely to apply for the loan c. Borrowers investing their loan proceeds differently than the bank requires d. None of the above