Use the figure below to answer the following question.
If the output level is Q1, then deadweight loss is indicated by the area
A. bce.
B. 0abe.
C. 0eQ1.
D. ecf.
Answer: A
You might also like to view...
Typically, as an economy begins to emerge from a recessionary phase of the business cycle,
A) unemployment falls immediately. B) inflation begins to fall. C) unemployment continues to rise. D) investment begins to fall.
If the euro–pound exchange rate increased from €1.1 per pound in 2009 to €1.27 per pound in 2012, it implies a depreciation in the value of the pound from 2009 to 2012
a. True b. False Indicate whether the statement is true or false
Refer to the above graph. It shows the cost curves for a competitive firm. At output level 20, the marginal cost is:
A. $0.90. B. $1.05. C. $1.20. D. $0.60.
Compute the marginal revenue when the price elasticity of demand is ?0.10.
A. ?3P, meaning marginal revenue is negative and 3 times greater than price. B. ?9P, meaning marginal revenue is negative and 9 times greater than price. C. 3P, meaning marginal revenue is positive and 3 times greater than price. D. 9P, meaning marginal revenue is positive and 9 times greater than price.