A welfare loss occurs when a monopolist chooses not to produce units of output that are of greater marginal value to consumers than the marginal cost of producing them
a. True
b. False
Indicate whether the statement is true or false
True
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Distinguish between "a change in demand" and "a change in quantity demanded." What are the causes of each type of change and how do we illustrate them graphically?
What will be an ideal response?
Which statement is true?
A. In China today, the private sector produces no more than 10% of the country's goods and services. B. Under communism in the Soviet Union, the private sector was almost as large as the government sector. C. In the American economy today, the public sector is almost as large as the private sector. D. None of the statements are true.
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession. b. increase in the money supply when there is a recession. c. decrease in government expenditures when there is a recession. d. All of the above are correct.
Using tradable allowances instead of quotas may be a better solution to the provision of common resources because they:
A. allow the government to set a specific amount of the good to be consumed, while quotas do not. B. ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not. C. assign private property rights-and an incentive, as owners, which means common resource now get overused, and quotas do not. D. allocate the good in a less efficient way, and quotas do not.