At the equilibrium price, deadweight loss is minimized
a. True
b. False
Indicate whether the statement is true or false
False
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Credit cards are NOT a part of the M1 or M2 money supply
Indicate whether the statement is true or false
Suppose a record company produces both swing and rhythm & blues music. An increase in the market demand for swing music therefore tends to
A) increase the demand for rhythm & blues music. B) increase the cost of producing rhythm & blues music. C) decrease the cost of producing rhythm & blues music. D) leave the cost of producing swing music unchanged.
The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are rich because they are enjoying unusually high ________ income, causing
them to have an unusually ________ saving ratio. A) permanent, high B) permanent, low C) transitory, high D) transitory, low
Consider a monopolist which sells output in two markets, the home market and the foreign market. Initially the monopolist is unable to price discriminate and sets a single price for both markets
However, the demand in the foreign market is such that at the price the monopoly sets, no goods are sold in the foreign market. If the monopolist is then able to price discriminate, will the overall deadweight loss increase or decrease? Explain.