Refer to the market diagram. Of the surplus that the consumers lose because there is a monopoly (and not perfect competition), how much has become deadweight loss?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area E
b. Area H
c. Area E + H
d. Area C + D + H
a. Area E
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The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.Number ofCar WashesPer MonthTotal MonthlyBenefit fromCar Washes0$01$202$363$484$565$60What's the average benefit of 4 car washes per month?
A. $12 B. $4 C. $14 D. $8
U.S. imports rise when income in the United States increases
a. True b. False Indicate whether the statement is true or false
In practice, placing a price control on a natural monopoly:
A. always creates the same outcome as public ownership of the industry. B. is easy and commonly practiced. C. is difficult because of lack of information. D. is never a good idea.
Financial markets:
A. enable buyers and sellers to exchange financial instruments but not risk. B. do not allow for the transfer of risk but do help reduce it. C. only allow the transfer of risk through derivative securities. D. enable buyers and sellers to exchange risk by buying and selling financial instruments.