Refer to the market diagram. Of the surplus that consumers lose because there is a monopoly (and not perfect competition), how much is lost to the monopoly itself?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area C + D
b. Area E + H
c. Area A + B
d. Area C + D + E
a. Area C + D
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In the short run, all costs are variable
a. True b. False Indicate whether the statement is true or false
Inoculation programs against certain diseases such as small pox, polio, and whooping cough create:
a. nonrival goods. b. external costs to society equal to the costs of the program. c. nonexcludable goods. d. public goods. e. positive externalities in consumption
Refer to the above figure. Saving occurs at
A. only at point A. B. to the left of point B. C. only at point B. D. to the right of point B.
The IS curve will shift down and to the left when
A. desired saving declines. B. consumption increases. C. the expected future marginal product of capital declines. D. government purchases increase.