Refer to Figure 19.1. Ben's consumer surplus is equal to
A. $200.
B. $100.
C. $50.
D. $0.
Answer: D
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The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement made by either firm regarding their future plans B) unpredictable strategies C) a focal point D) the Pareto criterion
If a monopolist is producing at an output rate at which P = ATC, then
A) its economic profit will be zero. B) its economic profit will be positive. C) it is maximizing its profits. D) it is minimizing its losses.
According to Walton and Rockoff, the primary reason for the demise of the canal system was
a. excessive reliance on individual entrepreneurs so that a system of canals was never created. b. excessive government regulation that kept canal rates and profits too low. c. environmental damage from deforestation that left canals flooded at some times and dry at others. d. competition from the railroads.
A cartel attempts to increase profits in the industry by limiting the production of each member firm
a. True b. False Indicate whether the statement is true or false