When compared to a perfectly competitive industry, in a monopoly:
A) both consumer surplus and social surplus are larger.
B) consumer surplus is lower but social surplus is larger.
C) both consumer surplus and social surplus are smaller.
D) consumer surplus is higher but social surplus is smaller.
C
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Money is ________
A) an asset B) a unit of measure C) a tool D) all of the above E) none of the above
In the long-run equilibrium in perfect competition,
A) producer surplus is positive. B) producer surplus is negative. C) producer surplus is greater than consumer surplus. D) producer surplus is less than consumer surplus.
Market demand is determined by all of the following except
A. Expectations about future income. B. The number of potential sellers. C. Income. D. Tastes.
Figure 4.3 illustrates the demand for tacos. Assume that tacos and beer are complements. A decrease in the price of beer would bring about a movement from:
A. point a to point c. B. point c to point a. C. D2 to D0. D. D0 to D2.