Explain why a monopoly that knows the demand curve of identical consumers can set a two-part tariff with the lump sum tariff equal to the total amount of potential consumer surplus
What will be an ideal response?
The producer wants to set the lump sum tariff equal to the competitive level of consumer surplus. This maximizes the producer surplus. The consumer surplus measures the difference between the consumer's value of the good and the price paid for each unit. Thus, the consumers are willing to pay up to the total amount of consumer surplus.
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Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?
In-kind transfers include housing subsidies and food stamps.
Answer the following statement true (T) or false (F)
Which of the following is NOT true about the Great Depression?
A. Lasted from 1929-1933 B. unemployment rate was 25% and GDP fell 30% C. most severe downturn in US history D. severe inflation E. Stocks fell 90%
Which of the following equals the ratio of the change in total revenues over the change in output?
A) total cost B) average revenue C) demand D) marginal revenue