Compare the consumer surplus in a perfect competition with that of a single-price monopoly and with a price-discriminating monopoly
What will be an ideal response?
The consumer surplus in a perfect competition is larger than the consumer surplus in a single-price monopoly. And, the consumer surplus in a single-price monopoly is larger than that with a price-discriminating monopoly. Indeed, for a monopoly able to perfectly price discriminate, there is no consumer surplus.
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The Fed's forward guidance in late 2012 through mid-2015 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
When the price of a video rental was $2.00, ticket sales at the local movie theatre averaged 180 admissions per night
Then the video store reduced the price of a video rental to $1, and the theatre manager reported that ticket sales had fallen to 126 per night. What is the approximate value of the cross price elasticity of demand between video rentals and theatre tickets? A) -0.53 B) +0.30 C) +0.53 D) +1.67
If net taxes are included in the model, the equation that shows consumption at each level of income is: C = a + b(Y - T) or C = a + bY - bT
a. True b. False
Imagine two economies that are identical except that for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion. It follows that
a. real GDP and the price level are lower in country B. b. real GDP, but not the price level, is lower in country B. c. the price level, but not real GDP is lower in country B. d. neither the price level or real GDP is lower in country B.