The portion of consumer surplus that would have existed in a perfectly competitive market but is unobtainable by anyone in society under a monopoly is known as
A) monopoly profits.
B) an unattainable surplus.
C) a deadweight loss.
D) an external cost.
C
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La Super Rica is a taco stand in Santa Barbara, California. It is popular with the locals and even the late Julia Child found the food delicious. If La Super Rica is making an economic profit, what is the probable outcome in the taco market?
A) The number of firms will increase, decreasing La Super Rica's demand. B) The number of firms will decrease, decreasing La Super Rica's demand. C) The number of firms will increase, increasing La Super Rica's demand. D) The number of firms will decrease, increasing La Super Rica's demand.
When the government makes a firm the exclusive legal provider of a good or service, it grants the firm
A) a network externality. B) a copyright. C) a quota. D) a public franchise.
Under what circumstances might a government price ceiling lead to the development of a black market?
What will be an ideal response?
Which of the following supply shocks would shift the aggregate supply curve inward?
What will be an ideal response?