Deadweight loss is
A) the amount of taxes that consumers and monopolists pay.
B) the loss of output when a perfectly competitive firm becomes a monopolist.
C) a loss of benefit to consumers in a monopoly that no one else in society can obtain.
D) the price that consumers pay for a product in excess of the average cost of producing it.
C
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As predicted by the economic growth model, countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita
Indicate whether the statement is true or false
Suppose there is currently a surplus of wheat on the world market. The problem of excess supply may be removed from the market by:
A) lowering the market price. B) shifting the supply curve leftward. C) shifting the demand curve leftward. D) Both A and B are plausible actions.
Change in Quantity Demanded
What will be an ideal response?
The intended purpose of price floors is to ______.
a. help large farming corporations contribute more revenue to the local tax base b. allow domestic farmers to trade competitively against foreign markets c. create enough revenue for small-volume farmers to maintain a “decent” standard of living d. encourage farmers to grow only those products which will maximize surplus for consumers