The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The deadweight loss when the market has a monopoly producer is
A) ace.
B) abf.
C) bcd.
D) bcef.
E) acd.
C
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The long-run average cost curve shows the lowest possible average cost for each output level, given that all inputs are variable.
Answer the following statement true (T) or false (F)
In the context of consumer choice theory, utility means:
a. usefulness. b. satisfaction. c. practicality. d. boring. e. action.
Why don't wages fall so that everyone with the skills and desire gets a job?
A. The government might prevent it, through minimum-wage legislation. B. Labor unions might prevent it, through bargaining backed by the threat to strike. C. Firms themselves might prevent it, by voluntarily choosing to pay higher wages than necessary. D. All of these are reasons why wages may not fall to equilibrium.
A nation which has many active free markets in which profits motivate sellers and also has regulatory bureaucracies would be an example of
A. a free market. B. a centrally planned economy. C. a mixed economy. D. an equitable economy.