Which of the following is true of a monopoly?
a. Consumers fare better under a monopoly than under perfect competition.
b. The output produced by a monopoly is allocatively efficient
c. Producer surplus is higher under monopoly than under perfect competition.
d. The deadweight loss caused by a monopoly market structure is zero.
c
You might also like to view...
T-Shirt Enterprises is operating in a perfectly competitive market. It is producing 3,000 t-shirts and selling them for $10 each. At this level of output, the average total cost is $10.50 and the average variable cost is $10.20. Based on these data, the firm should
A. decrease production to 2,500 t-shirts. B. shut down in the short run. C. continue to produce 3,000 t-shirts. D. increase production to 3,500 t-shirts.
State at least two major benefits of promoting non-governmental organizations in developing countries as sources and conduits of foreign assistance
What will be an ideal response?
A balance-of-payments surplus for the United States can be corrected by
A. Increasing quotas on foreign goods. B. Increasing U.S. taxes. C. Subsidizing U.S. exports. D. Reducing tariffs on foreign goods.
Suppose in the city of Blacksburg, music stores operate in a monopolistically competitive market. If the price of CDs in Blacksburg is currently equal to $20 per CD and the average cost of CDs is $15, in the long run we expect the price of CDs to:
A. increase. B. stay the same. C. decrease, and the average cost of selling CDs to increase. D. decrease, and the average cost of selling CDs to decrease.