Which of the following is not true when a monopoly market is in equilibrium?
A) Consumer well being would be improved if less resources were allocated to the industry in which the monopoly operates.
B) Price > MC.
C) Price > MR.
D) Price = Average Revenue.
A
You might also like to view...
Using rate-of-return analysis to determine who benefits and who does not benefit from the current structure of Social Security is
A. embraced by all. B. embraced not only by financial planners but also by most economists. C. rejected by those that view the program as social insurance rather than as an investment. D. rejected by everyone.
Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift
A) leftward and the equilibrium price of leather shoes will fall. B) leftward and the equilibrium price of leather shoes will rise. C) rightward and the equilibrium price of leather shoes will fall. D) rightward and the equilibrium price of leather shoes will rise.
Some people assert that protection from foreign competition prevents rich countries from exploiting developing countries. What is this argument in more detail and what is its flaw?
What will be an ideal response?
Allocative efficiency requires that
a. MC equals ATC. b. MC equals P. c. AR equals AFC. d. MC equals MR.