For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A. market demand increases.
B. marginal cost increases.
C. market demand decreases.
D. none of these: insufficient information to answer.
Answer: A
You might also like to view...
When neither player in a game would want to deviate from a particular outcome, taking the opponent's behavior as given, the outcome is
a. a Stackelberg equilibrium. b. Pareto optimal. c. a Nash equilibrium. d. a dominant strategy.
If the price elasticity of demand for razors is 0.32, the demand for razors is
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. E) perfectly elastic.
Discretionary fiscal policy is a policy that _____
a. is developed in secret b. applies to some states and not all states c. applies to only to some specific industries in an economy d. works automatically without public announcement or plan e. is an intentional change in taxation or government spending
Price discrimination that substantially lessens competition is prohibited by the Clayton Act
a. True b. False Indicate whether the statement is true or false