The existence of a deadweight loss associated with a monopoly can be seen because
A) consumers are willing to pay more for the last unit of output than it cost to produce.
B) the cost of the last unit produced is more than consumers are willing to pay for it.
C) the producer surplus is larger than in a competitive market.
D) None of the above.
A
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A. trade-offs. B. opportunity costs. C. scarcity of resources. D. All of the responses are correct.
The slope of a production possibilities frontier that displays increasing opportunity cost is
A) positive and constant. B) negative and constant. C) steeper near the horizontal intercept than near the vertical intercept. D) steeper near the vertical intercept than near the horizontal intercept.
Present the case for floating exchange rates
What will be an ideal response?
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What will be an ideal response?