Assume someone organizes all farms in the nation into a monopoly. As a result, consumer surplus will
A) not change.
B) increase.
C) decrease.
D) either increase, decrease, or not change depending if the monopoly's marginal revenue curve lies below, above, or is the same as its demand curve.
E) None of the above answers is correct because the effect on consumer surplus depends on whether the monopoly is a single-price or a price-discriminating monopoly.
C
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An argument against price floors is:
A. non-price rationing must occur, and can lead to consumers waiting in line. B. the cost to taxpayers if the government buys all surplus. C. producers will reduce the quality of the goods they sell. D. they transfer surplus from producers to consumers.
If two goods both had positive cross elasticities and positive income elasticities,
a. they are both normal and substitutes for one another. b. they are both normal and complements for one another. c. they are both inferior and substitutes for one another. d. they are both inferior and complements for one another.
The principle of comparative advantage helps explain trade between nations
a. True b. False Indicate whether the statement is true or false
The natural rate of unemployment
a. arises from a single problem that has a single solution. b. is easy for policymakers to reduce. c. Both a and b are correct. d. None of the above is correct.