Relative to a perfectly competitive market, a monopoly results in
A) a gain in producer surplus equal to the gain in consumer surplus.
B) a gain in producer surplus equal to the loss in consumer surplus.
C) greater economic efficiency.
D) a gain in producer surplus less than the loss in consumer surplus.
D
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A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500
Did she gain any consumers surplus? If so, how much? If not, why not?
A scientist who is studying earthquakes includes the impact of wind when performing some tests of damages to structures. This is an example of
A) failing to understand how to do scientific methodology. B) irrational behavior in noneconomic situations. C) accounting for every possible phenomena that may effect the problem under examination. D) failing to hold all other things constant.
If a firm experiences economies of scope, per unit production costs fall as it produces more and more of its product
a. True b. False
If the government imposes a price ceiling below the market equilibrium price, then:
a. c and d. b. there will be excess supply. c. there will be excess demand. d. the intent is to benefit consumers. e. the intent is to benefit producers.