An efficient use of resources occurs when
A) there is a deadweight loss.
B) the total social benefit of a good equals its total social cost.
C) there is perfect price discrimination by a monopoly.
D) there is no producer surplus.
C
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A horizontal merger is one in which the merging firms:
a. are about the same size. b. produce the same good in the same industry. c. will control greater than 50 percent of the market. d. have never directly competed in the past. e. will pay twice as much in taxes.
Which of the following characteristics of perfect competition does not apply in monopolistic competition?
a. free entry and exit b. homogeneous products c. numerous participants d. perfect information
You won a free ticket to see the latest Star Trek movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Trek movie on Friday?
A. $30 B. $35 C. $50 D. $0
The table below shows the weekly supply for hamburgers in a market where there are just three sellers.PriceSeller 1 Qs 1Seller 2 Qs 2Seller 3 Qs 3$5854464334322221If the price of a hamburger decreases from $3 to $2, then the weekly market quantity of hamburgers supplied will
A. decrease from 9 to 5. B. increase from 5 to 13. C. decrease from 13 to 5. D. increase from 5 to 9.