Which is an ironic solution to the government protected monopoly?
A) The government might try to "force" less competition in the market.
B) The government might "do more" by "doing less," i.e., by removing the monopoly's protection.
C) The dead weight loss goes to the government.
D) The inherent unfairness of monopoly can only be solved by dictatorship.
B
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The figure above shows the U.S. demand and U.S. supply curves for cherries. Suppose the world price of cherries is $2 per pound. At this price, U.S. consumption of cherries will equal
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.
All of the following are examples of positive statements EXCEPT:
A. Tax revenues increase as output per person increases. B. High rates of economic growth are undesirable because of the destruction caused to the environment. C. Growth in an economy generates a budget surplus. D. As output per person increases access to consumer goods increases.
The demand curve for monopolistic competitive firms is
A. slightly elastic because there are few substitutes for the product. B. slightly elastic because there are many substitutes for the product. C. very elastic because there are few substitutes for the product. D. very elastic because there are many substitutes for the product.
Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, what is the market quantity supplied at a price of $30?
A. 200 B. 250 C. 300 D. 350