What is deadweight loss?
a. It is the amount of surplus that consumers lose due to monopoly.
b. It is the amount of surplus that producers lose due to perfect competition.
c. It is the amount of surplus which is completely lost to society due to monopoly.
d. It is the amount of surplus which was earned by consumers under perfect competition and is transferred to producers due to monopoly.
C
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________ refers to an action that an individual with private information takes in order to convince others about his information
A) Sniping B) Signaling C) Hedging D) Speculating
Refer to Figure 4-1. Arnold's marginal benefit from consuming the fourth burrito is
A) $0. B) $1.00. C) $2.50. D) $3.00.
In order to bring about a real depreciation of the dollar, the U.S. can hope for
A) a rise in the U.S. price level. B) a fall in foreign price levels. C) a rise in the dollar's nominal value in terms of foreign currencies. D) a rise in foreign price levels or a fall in the dollar's nominal value in terms of foreign currencies. E) increased output and full employment.
MC and MU are set equal to one another in a market economy because
a. producers and consumers are free to communicate with one another. b. producers and consumers both respond to the same price. c. consumers must accept the prices set by producers. d. producers must accept the price set by consumers.