With a monopoly, the consumer’s surplus is lower than it would be with a perfectly competitive industry.
Answer the following statement true (T) or false (F)
True
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In 2008, Japan's government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result
A) Japan's aggregate demand curve shifted rightward. B) Japan's aggregate supply curve shifted leftward. C) Japan's aggregate demand curve shifted leftward. D) Japan's long-run aggregate supply curve shifted leftward.
Table 30.2Number of stylists (per week)Total output (per week)Marginal physical product (output per stylist)Total revenue (dollars per week)Marginal revenue product (dollars per stylist)00---________---160________________________280________________________390________________________490________________________Table 30.2 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists. In the spaces provided, compute the marginal physical product (MPP) of the hair stylists, total revenue, and marginal revenue product of the stylists, assuming that a hair stylist charges $60 per appointment. In Table 30.2, as more stylists are hired,
A. There are economies of scale. B. There are diseconomies of scale. C. MRP increases. D. There are diminishing returns.
Table 7-7 Buyer Willingness to Pay Michael $500 Earvin $400 Larry $350 Charles $300 Refer to Table 7-7. You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You offer to sell the tickets for $325. How many tickets do you sell, and what is the total consumer surplus in the market?
a. three tickets; $225 b. two tickets; $225 c. one ticket; $175 d. three tickets; $275
Product differentiation can be used by firms to do all of the following except
A. provide consumers with commitment devices. B. erect barriers to entry for potential firms. C. gain complete control over the price of their product. D. gain market share.