In the figure above, if the firm is regulated using a marginal cost pricing rule, the consumer surplus created is equal to the area of
A) ABG.
B) ACF.
C) BCFG.
D) BCE.
E) None of the above because there is no consumer surplus created.
B
You might also like to view...
The United States is one of the least “marketized” economies in the world.
Answer the following statement true (T) or false (F)
The price elasticity of demand for meat in general is inelastic while the price elasticity of demand for turkey or chicken is more elastic. Why?
A) Turkey and chicken are not red meat. Because they are not the same as other meats, they should have different elasticities. B) Turkey and chicken have many substitutes, such as fish or beef, while meat in general has fewer substitutes. C) Turkey and chicken are inferior goods. D) Turkey and chicken are normal goods.
A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds
A) firms; insurance companies B) savers; borrower C) borrower; savers D) governments; households
Refer to Figure 2-11. The shift of the production possibilities frontier from A to B can best be described as
a. Simultaneous Technological advances in the book and DVD industries.
b. Reallocation of resources away from the production of DVDs and toward the production of books.
c. Economic growth
D. All of the above are correct