When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus.
B) monopoly profits.
C) opportunity cost.
D) consumer surplus.
Answer: A
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Refer to Table 4-7. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labor demanded?
A) 40,000 B) 570,000 C) 610,000 D) 1,180,000
If a market is contestable, how does the equilibrium differ from that of a monopoly?
What will be an ideal response?
________ and ________ oligopolies are similar in that they both compete on quantity.
A) Cournot; Bertrand B) Stackelberg; Bertrand C) Cournot; Stackelberg D) Stackelberg; Chamberlin
When market wages increase in a perfectly competitive market, then
A. the marginal factor cost increases. B. the marginal factor cost decreases. C. the marginal product decreases. D. the marginal product increases.