When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is transferred to the monopolist in the form of
A) marginal cost.
B) economic profit.
C) deadweight loss.
D) taxes.
E) average variable cost.
B
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Under a progressive income tax system, the marginal income tax rate paid by taxpayers
A) declines as their incomes increase. B) rises as their incomes increase. C) is unchanged as their incomes increase. D) is unrelated to their incomes.
If a firm in a monopolistically competitive market has a demand curve shifting to the right, it could be that:
A. the selling price is less than the average total cost of the firm. B. firms are leaving the market. C. negative economic profits are being earned. D. All of these statements are true.
Economic discrimination occurs when two equal factors of production are paid differently.
Answer the following statement true (T) or false (F)
Which statement is true?
A. The Sherman Act modified the Clayton Act. B. The Sherman Act prohibits price discrimination. C. The Sherman Act prohibits interlocking directorates. D. None of these statements are true.