In Figure 29.1, the deadweight loss associated with monopoly is
A. EBC.
B. PmonopolyAB.
C. FPPCC.
D. ABC.
Answer: A
You might also like to view...
During the bank panics of the Great Depression the currency ratio
A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly.
The Yankee Candle Company, in Hatfield, Massachusetts, makes thousands of scented candles each day. The factory emits the odor of the candles it produces, some of which smell quite nice. On days when they make strawberry candles the townspeople really enjoy the smell. On days when they make potpourri scented candles, people close their windows and don't go outside. What can we infer about the
scented candle market? a. b and c. b. Strawberry candles are more expensive than is socially optimum. c. Potpourri candles are priced too low to be socially optimum. d. Candle production generates only negative externalities. e. Candle production technologies are inefficient.
Suppose a manager is deciding how to allocate workers between two plants. The marginal product of labor in plant 1 is 10 units of output. The marginal product of labor in plant 2 is 14 units of labor. What should the manager do?
A. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 1 than in plant 2. B. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 2 than in plant 1. C. Reallocate workers from plant 2 to plant 1, because MPL is greater in plant 1 than in plant 2. D. Reallocate workers from plant 2 to plant 1, because MPL is greater in plant 1 than in plant 1.
While net domestic product (NDP) is theoretically a better measure of economic activity than gross domestic product (GDP), GDP is used more frequently because:
A. net exports, which are included in NDP but not GDP, are difficult to measure. B. consumption, which is included in NDP but not GDP, is difficult to measure. C. investment, which is included in NDP but not GDP, is difficult to measure. D. depreciation, which is included in NDP but not GDP, is difficult to measure.