Refer to the figure above. When the monopolist is free to set the price, ________
A) it makes a profit of $150
B) it makes a loss of $150
C) it makes a profit of $300
D) it makes a loss of $300
C
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A competitive equilibrium has all of the following properties except
A) MPN = slope of PFF. B) MRS1,C = MRT1,C. C) MRT1,C = MPN. D) MPN = w.
The model of perfect competition is valuable for
A) prediction. B) comparison to other markets. C) Either A or B. D) None of the above.
Analyzing each action of a firm on a case-by-case basis to determine if it is in violation of the antitrust laws is generally called judgment by:
A. performance. B. structure. C. case-by-case. D. comparison.
If government sets a minimum price above the equilibrium price:
A. some consumers gain at the expense of producers and the total surplus decreases. B. some consumers gain at the expense of producers and the total surplus increases. C. some producers gain at the expense of consumers and the total surplus decreases. D. some producers gain at the expense of consumers and the total surplus increases.