Suppose a monopoly's inverse demand curve is P = 100 - Q, it produces a product with a constant marginal cost of 20, and it has no fixed costs. Compared to the consumer surplus if the market were perfectly competitive, consumer surplus is how much less when the monopolist practices perfect price discrimination?
A) 3200
B) 1600
C) 800
D) 0
A
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The decisions on the part of the government to increase spending by $5 billion will have the largest impact on aggregate demand when the spending is financed by the sale of bonds to
A. the member banks. B. the public. C. the Fed. D. foreigners.
Max is shopping for a new winter jacket. The salesperson explains that two coats have identical features-the Columbia jacket that costs $120, and the Burton jacket that costs $300. Max buys the Burton jacket. Burton jackets may be a good example of:
A. an inferior good. B. a Giffen good. C. a Veblen good. D. a normal good.
Some costs cannot be varied within a given time period. These costs are called
A. overheads. B. total costs. C. fixed costs. D. variable costs.
If average cost is falling, then marginal cost must be falling.
Answer the following statement true (T) or false (F)