Monopoly profit is not a social problem because
a. the size of the economic pie grows when monopoly profits increase.
b. producers are more efficient than consumers.
c. the profit represents a transfer from the consumer to the producer with no loss in total surplus.
d. None of the above are correct.
c
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Refer to the figure above. What is the equilibrium wage rate and employment level after the labor demand curve shifts to LD2?
A) $50 and 50 units of labor B) $40 and 30 units of labor C) $20 and 40 units of labor D) $10 and 60 units of labor
If a project involves risk, managers can account for the risk by ________ the discount rate, which ________ the present value of the future profits.
A) increasing; decreases B) decreasing; decreases C) increasing; increases D) decreasing; increases
If equal amounts of a variable input are sequentially added to the fixed input in a typical production function,
A. the additions to output will be constant. B. increments to output will increase indefinitely. C. the increments to output will decrease first and then increase. D. increments to output will first increase at an increasing rate and then at a decreasing rate.
Refer to Scenario 1.2 below to answer the question(s) that follow.SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.Refer to Scenario 1.2. The statement that a 1% increase in the automobile emissions causes a 0.0003% increase in average global temperatures is an example of
A. positive economics. B. normative economics. C. the fallacy of logic. D. marginal economics.