If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then total surplus will be
A) $0.
B) $4 million.
C) $8 million.
D) $16 million.
D
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The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market
A) below; below B) below; above C) above; below D) above; above
Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchange rate between the yen and the euro
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If autonomous investment increases by $200 million and the marginal propensity to consume (MPC) is 0.75, then
A. real Gross Domestic Product (GDP) will rise by $400 million. B. real Gross Domestic Product (GDP) will rise by $800 million. C. real Gross Domestic Product (GDP) will fall by $200 million. D. real Gross Domestic Product (GDP) will rise by $200 million.