The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a monopoly who charges a single price, the change in consumer surplus is
A) A.
B) A + B + C.
C) A + B + C + D + E.
D) zero.
A
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If resource prices rise and the average total cost of producing a product increases as the firms in an industry expand output in response to an increase in demand, the long-run market supply curve for the product will
a. be perfectly elastic (a horizontal line). b. be perfectly inelastic (a vertical line). c. slope upward to the right. d. be more inelastic than the short-run supply curve for the product.
China exports toys to the United States; in a closed economy China must have a domestic price that is ________ the world price of toys.
A. greater than B. less than C. equal to D. close to
As the quantity of labor increases, the marginal product of labor
A) is constant. B) increases. C) decreases. D) may either increase or decrease.
Economists normally assume that the goal of a firm is to: a. sell as many units of output as possible
b. maximize profits. c. sell products at the highest prices possible. d. maximize sales revenue.