If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's
A) fixed cost.
B) long-run positive economic profit.
C) deadweight loss.
D) consumer surplus.
Answer: D
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Alan Garcia
A) in his first Presidency in Peru, followed free market economic policies. B) nationalized the property of the financial services sector during his first Presidency. C) was never freely elected in Peru and ruled with the support of the military. D) maintained balanced budgets and helped Peru avoid the economic problems most Latin American nations were experiencing in the 1980s.
When the economy produces less than its potential output, it is:
A. called a recession. B. not in long-run equilibrium. C. producing a quantity less than the long-run aggregate supply quantity. D. All of these are true.
Which of the following could explain why the government blocked the potential merger between Office Depot and Staples?
a. The merger would have increased the Herfindahl-Hirshman Index for that industry. b. The merger would have increased the level of perfect competition in the industry. c. The merger posed a threat to foreign competition in the industry. d. The merger would have eased the barriers to entry in that industry.
A profit-maximizing monopolistically competitive firm will expand output to the point where:
A. total revenue equals total cost. B. marginal revenue equals marginal cost. C. price equals average total cost. D. price equals marginal cost.