Monopoly is inefficient because some consumer surplus is transferred to producer surplus.
a. true
b. false
b. false
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If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal.
Answer the following statement true (T) or false (F)
An example of a perfectly competitive firm is
A) an oat farmer in the United States. B) the local cable TV company. C) a U.S. automobile producer. D) a big city newspaper.
Which of the following taxes tend to make income distribution in the United States more equal?
a. sales (i.e., excise) taxes b. personal income taxes c. payroll taxes d. All of the above are correct.
Which of the following best defines a negative network externality?
a. an increase in a consumer’s quantity demanded for a good because a greater number of other consumers are purchasing the good b. an increase in a consumer’s demand for a good because fewer consumers are purchasing the same good c. the costs involved in changing from one product to another brand or in changing suppliers d. the situation in which each firm is said to be doing as well as it can give the actions of its competitors