In comparison to perfect competition, monopoly price-quantity combinations generate
A. a producer surplus that is smaller.
B. total revenue to the producer that is smaller.
C. a combination of producer and consumer surplus that is smaller.
D. a consumer surplus that is larger.
Answer: C
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Present value analysis suggests that high-income earners
A. make a competitive real rate of return through Social Security. B. can make an average real rate of return through Social Security only if they live to age 100. C. cannot make an average real rate of return through Social Security even if they live past 100. D. can make an average real rate of return through Social Security only if they live to age 65.
Explain how any cap-and-trade system can be made to be equivalent to a pollution tax and vice versa.
What will be an ideal response?
Perfect competition describes a firm's behavior in a market model where:
a. there are few firms producing identical products. b. there are few firms producing highly differentiated products. c. there are many firms producing identical products. d. there are many firms producing highly differentiated products. e. there are barriers to entry and exit for the new firms.
Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, it must be true that:
A. Moe gets less benefit from spending time with Curly than from studying. B. Moe gets more benefit from spending time with Curly than from studying. C. the opportunity cost of studying is greater than the value Moe gets from spending time with Curly. D. the opportunity cost of studying is less than the value Moe gets from spending time with Curly.