Refer to Figure 10.5. The deadweight loss associated with the monopoly would be:
A. $787.5.
B. $612.5.
C. $262.5.
D. There is not sufficient information.
Answer: B
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In the figure above, when production is 3 units with a price of $3, the consumer surplus equals
A) a + b. B) a + b + f + g. C) a + b + f + g + h + l. D) a + b + f + g + h + l + i + m.
Two firms, Industrio and Capitalista, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Both firms currently use process A, and each emits 4 tons of smoke per day. The government is considering two plans to reduce pollution: requiring both firms to reduce pollution by 25 percent or auctioning pollution permits. Each permit would entitle the owner to emit one ton of smoke per day. Without a permit, no smoke can be emitted. ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Industrio ($/day)$350$400$500$700$1,000Cost to Capitalista
($/day)$225$250$290$400$600 Given that both firms are currently using process A, the cost of requiring the firms to reduce pollution by 25 percent is ________ per day. A. $215 B. $375 C. $75 D. $790
Which of the following institutions is responsible for supervising the banking system of the United States?
A. The Federal Reserve System B. The Open Market Committee C. The U.S. Treasury D. The Federal Deposit Insurance Corporation
In the Keynesian model with government and the foreign sector added, what are the components of spending? Which of these components are autonomous and which are NOT? How is the equilibrium found? When the economy is NOT at an equilibrium, what adjustments are made?
What will be an ideal response?