The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, social welfare equals
A) A.
B) A + B + C.
C) A + B + C + D + E.
D) zero.
C
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When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential GDP and the output gap is _________
A. exceeds; below; negative B. is below; below; negative C. exceeds; above; positive D. is below; above; negative
The products sold by monopolistically competitive firms
A) are differentiated. B) are homogeneous. C) can be either homogeneous or differentiated. D) are close substitutes of each other.
Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?
a. Inclusion of discouraged workers b. Inclusion of those only working part time c. Inclusion of those who are overqualified for their current jobs d. Inclusion of those who are marginally attached to the labor force e. Inclusion of those who pretend to look for work in order to qualify for welfare programs
Economists study how people make decisions
a. True b. False Indicate whether the statement is true or false