Which of the following statements comparing monopoly with competition is correct?
a. A monopolist produces a higher level of output and charges a lower price than a competitive firm would.
b. With perfect price discrimination, the total surplus under monopoly can be the same as under competition.
c. With or without price discrimination, the consumer surplus under monopoly is at least as large as it would be under competition.
d. The deadweight loss associated with monopoly is caused by the positive economic profits of the monopolist; competitive firms do not earn a positive economic profit so there is no deadweight loss under competition.
b
You might also like to view...
Growth accounting refers to the method used to
A) identify the contribution of economic growth from increased capital, labor, and technological progress. B) measure growth in the capital stock. C) measure the growth in the labor force. D) identify the costs of promises made by the government today but paid for by future generations.
If the complicated technology costs $10million to develop while the simple technology costs $2million to develop, which technology is more profitable to develop?
a. The simple voice-activated software b. The complicated thought-activated software c. Neither of the software d. Need more information
Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 illustrates a(n):
A. decrease in demand. B. increase in demand. C. decrease in quantity demanded. D. increase in quantity demanded.
If the reserve ratio is .20, the money multiplier can be as high as
A. 20. B. 10. C. 5. D. 50.