One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices.
B) raise prices.
C) price discriminate.
D) become more competitive.
E) produce where price equals average total cost.
C
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According to the quantity theory of money, a 25 percent change in M, the quantity of money, leads to a 25 percent change in
A) V, the velocity of circulation. B) P, the price level. C) Y, real GDP. D) R, the interest rate.
Which of the following is a feature of a black market? a. It includes transactions that are not approved by the government
b. It includes the transaction of goods between the government and firms. c. It includes the transaction of intermediate goods. d. It includes the transaction of final goods and services that are produced in a country.
Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are
a. diminishing returns to capital so the poor country grows slower. b. increasing returns to capital so the poor country grows slower. c. diminishing returns to capital so the poor country grows faster. d. increasing returns to capital so the poor country grows faster.
The prisoners’ dilemma describes a single-play game that features
A) an outcome in which the participants collude. B) a large number of rivals cooperating with each other. C) a situation in which one player has better odds than the other. D) two players who are unable to communicate with each other.