Refer to the graph shown. The loss of surplus to consumers resulting from monopoly is:
A. 42.5.
B. 20.
C. 31.25
D. 11.25.
Answer: B
You might also like to view...
We typically call an external cost:
A. a network externality. B. a negative cost. C. a negative externality. D. a societal drain.
What roles do central banks play in an economy?
A) Central banks are government depositories. B) Central banks lobby for regulation on behalf of the banking industry. C) Central banks monitor fiscal agents in the economy. D) none of the above
In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, an increase in the money supply does all of the following EXCEPT:
a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation.
Two perfectly competitive firms, Firm A and Firm B, both face random demand and have the same expected marginal revenue, as illustrated in the figure below. For which firm would a forecast of demand be more valuable?
A) Firm A
B) Firm B
C) The value for each firm is the same because the expected marginal revenue and marginal cost are the same.
D) A forecast is more valuable for Firm A if the demand will be high and more valuable for Firm B if the demand will be low.