In this situation, the deadweight loss from monopoly is:
a. 0.40.
b. 0.16.
c. 0.12.
d. 0.08.
d
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A voluntary import expansion involves a
A) country agreeing to import more from another country. B) country agreeing to reduce its trade barriers. C) country agreeing to an import quota. D) firm agreeing to expand output.
Which of the following flows from the government to the households?
a. Goods and services b. Resources of production c. Taxes d. Government services e. Loans
Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?
A. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist. B. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does. C. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost. D. A monopolist can earn economic profit in the short run; a competitive price taker cannot.
If demand is inelastic and price is lowered, total revenue will
A. rise. B. fall. C. stay the same. D. possibly rise or possibly fall.