If the natural monopoly shown in the figure above is unregulated, then consumer surplus will be
A) $0.
B) $4 million.
C) $8 million.
D) $16 million.
B
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Planned expenditures equal real disposable income
A) at every point on the saving function. B) at every point on the consumption function. C) at every point on the 45-degree line. D) when saving equals zero.
Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase B) D no change, S increases, P decreases, Q decreases C) S increases, D no change, P decreases, Q increases D) D and S increase, P and Q decrease
If a firm adds one more worker and total output increases from 100 to 120, the marginal product of labor equals
a. 220. b. 120. c. 100. d. 20.
Recently, Skooterville has experienced a large growth in population. As a result, the demand curve for telephone service in Skooterville:
A) has shifted to the right. B) has shifted to the left. C) has shifted down. D) Both B and C are correct. E) none of the above