Graphically, producer surplus is the area below the price line and above the supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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With rent seeking by a monopoly
A) the monopolist's average total costs will increase so that its average total cost curve is tangent to the demand curve at the profit-maximizing price. B) a monopoly uses all of what would be its economic profit to prevent other firms from taking its economic rent. C) the full deadweight loss of monopoly is larger than in the absence of rent seeking. D) All of the above answers are correct.
If the natural monopoly shown in the figure above is unregulated, then consumer surplus will be
A) $0. B) $4 million. C) $8 million. D) $16 million.
When there is a positive externality associated with the watering of one's lawn, the free market results in:
a. not enough lawn watering. b. too much lawn watering. c. the socially optimal level of lawn watering. d. people watering each other's lawns. e. government subsidies for lawn watering.
Occupational crowding refers to
A. firms receiving more applications for high-wage job openings than for low-wage job openings. B. employee-based discrimination. C. licensure requirements to enter certain occupations. D. women being intentionally segregated into particular occupations. E. low turnover associated with high-wage occupations.