In general, with a monopolist's outcome, total surplus is:
A. the same as that of a competitive market.
B. higher than that of a competitive market.
C. lower than that of a competitive market.
D. Any of these is possible.
Answer: C
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Use the following figure to answer the question below.
Jorge's opportunity cost of producing 1 pound of green beans is ________ pound(s) of corn.
A. 1/4 B. 4 C. 2 D. 1
If the price of papayas is 12 baht in Thailand and the exchange rate is 30 baht per dollar, then what is the dollar price of papayas?
A) $0.40 B) $2.50 C) $2.90 D) $26.00
If unemployment insurance causes someone to wait longer before looking for work, this would be called
A. asymmetric information. B. moral hazard. C. adverse selection. D. adverse allocation.
In order to study how changing price affects consumer decisions, we must assume all other factors, such as income and the prices of other goods are constant. This assumption is best know as
A. ceteris paribus. B. rationality. C. behavioral economics. D. normative economics.