Based on the demand curves for perfectly competitive firms and monopolists, the monopolist loses the profit in area C when it ______.
a. raises prices by one more unit
b. increases output by one more unit
c. sells one more unit at the same price
d. sells one less unit at the same price
b. increases output by one more unit
You might also like to view...
When a tax is placed on buyers:
A. the resulting price paid by consumers is the same as if the tax were placed on sellers. B. the resulting price received by sellers is the same as if the tax were placed on sellers. C. the equilibrium quantity will unequivocally decrease. D. All of these are true.
If a union raises initiation fees significantly and if employers in the industry hire only union workers, the supply of union labor curve will shift to the left
a. True b. False
A recent economics graduate is looking for a position as an industrial economist. During the period this individual starts looking for a job and ultimately finds one, he may be classified as:
a. seasonally unemployed. b. frictionally unemployed. c. cyclically unemployed. d. structurally unemployed. e. occasionally unemployed.
You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a very good show and place only a $10 value on seeing the remainder of the show. Alternatively you could leave the theater and go home and watch TV or read a book. You place an $8 value on watching TV and a $6 value on reading a book
a. You should leave the theater since the net benefit from seeing the remainder of the show is -$20, while going home will earn you at least $8 of satisfaction. b. You should stay and watch the remainder of the show. c. You should go home and watch TV. d. You should go home and read a book.