When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a transfer of benefits from the consumer to the producer.
b. a loss in total welfare.
c. the higher marginal costs incurred by the monopolists in comparison to competitive firms.
d. the higher marginal revenues gained by the monopolists in comparison to competitive firms.
a
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The goal of product differentiation and advertising in monopolistic competition is to make
A. price more of a factor and product differences less of a factor in consumer purchases. B. price less of a factor and product differences more of a factor in consumer purchases. C. the firm productively efficient even if it is not allocatively efficient. D. the firm allocatively efficient even if it is not productively efficient.
Assuming mustard and burgers are complements, a decline in the price of burgers will
A) decrease the demand for burgers. B) decrease in the quantity demanded of burgers. C) increase the demand for mustard. D) decrease the demand for mustard.
Which of the following countries has higher income mobility than the United States?
A. Canada B. France C. Denmark D. All of these countries have higher income mobility than the United States.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.