Refer to Figure 4-6. What area represents producer surplus at P2?
A) A + B + D B) B + D + G C) B + C + D + E D) B + D
D
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If one firm in a duopoly increases its production by one unit beyond the monopoly output, that firm's profit ________, the other firm's profit ________, and the total profit of the duopoly ________
A) increases; increases; increases B) does not change; does not change; does not change C) increases; decreases; does not change D) increases; does not change; increases E) increases; decreases; decreases
A monopolist can perfectly price discriminate:
A. when it can distinguish consumers with a high versus low willingness to pay. B. when it offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay. C. if it knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit. D. whenever it chooses to as a result of its market power.
Answer the following statement(s) true (T) or false (F)
1. In Average and Marginal Costs, the firm will reach peak production when the AFC curve reaches zero.
2. When a firm’s marginal product rises, its marginal cost rises in proportion.
3. When a firm’s marginal product is increasing, its average cost is decreasing.
4. In an appliance factory, the average cost of producing a refrigerator will be relatively high both when very few units are being produced and when production output is especially large.
5. Economists define the long run as anything more than one year in the future.
The long-run supply curve for a competitive, decreasing-cost industry is downward sloping.
Answer the following statement true (T) or false (F)