These are the cost and revenue curves associated with a firm.
Assuming the firm in the graph shown is producing Q1 and charging P3 in the long run, then the deadweight loss is
A. Area A.
B. Area B.
C. Area C.
D. There is no deadweight loss.
Answer: B
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Fertility refers to:
A) the ratio of deaths in an area to the population of the area. B) the number of children per adult or per woman of childbearing age. C) the ability of an individual to read or write in at least one language. D) the average period that an individual may be expected to live.
In Keynesian analysis, if investment remains constant when income changes, the investment is called
A) discretionary. B) autonomous. C) planned. D) unplanned.
Sellers bear the entire incidence of a tax on a good. This outcome can occur if
A) supply is perfectly inelastic. B) the good is an inferior good. C) demand is perfectly inelastic. D) the demand curve is downward sloping and the supply curve is upward sloping. E) supply is perfectly elastic.
In a simple macroeconomic model, replacing the assumption of exogenous investment with the accelerator theory of investment ________ the effect on equilibrium GDP of fiscal policy changes, and ________ the effect on equilibrium GDP of changes in
autonomous consumption. A) increases, increases B) increases, dampens C) dampens, increases D) dampens, dampens