The "deadweight loss" from a monopoly refers to:
a. the portion of a monopolist's profits that are above the competitive profit level.
b. the increase in price due to the monopolization of a market.
c. the inefficient use of factors of production by a monopoly.
d. the loss of consumer surplus due to the monopolization of a market that is not transferred to another economic actor.
d
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How does the production possibilities frontier illustrate opportunity cost?
What will be an ideal response?
To the extent that the political process of moving legislation through Congress is slow
A) the effect time lag will be long. B) the recognition time lag will be long. C) the action time lag will be long. D) automatic stabilizers will not be effective.
A housewife returning to the labor force after 20 years would be _____ unemployed until she finds work.
A. Frictionally B. Structurally C. Cyclically
When a government has a budget deficit, it must issue (sell) government bonds to finance the deficit. Does it matter for the rate of inflation if the government sells the government bonds to the public or sells the government bonds to the central bank?
Explain why it does or does not matter. What will be an ideal response?