Suppose that Figure 7.5 shows a monopolist's demand curve, marginal revenue, and its cost. At the profit-maximizing output level and price, the consumer surplus would be:
A. $2,450.
B. $1,225.
C. $612.50.
D. $262.50.
Answer: C
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Which of the following is an example of a two-part tariff?
A) price discrimination based on the buyers' willingness to pay B) charging a hookup fee plus a monthly charge equal to marginal cost C) higher sales tax on specific products D) different prices based on the cost of production and quantity bought E) A regulated firm uses marginal cost pricing for some customers and average cost pricing for other customers.
Gross domestic product is calculated by summing up
A) the total market value of goods and services in the economy. B) the total quantity of goods and services produced in the economy during a period of time. C) the total quantity of goods and services in the economy. D) the total market value of final goods and services produced in the economy during a period of time.
Demographic handicaps and discrimination are primarily responsible for the extent of poverty
Indicate whether the statement is true or false
When the U.S. price level increases, economists predict a:
A. movement down along the aggregate demand curve. B. shift straight up of the aggregate demand curve. C. shift to the right of the aggregate demand curve. D. decrease in expenditure.