The long-run equilibrium price-output combination for a monopolist is economically inefficient because:
a. it does not operate on the minimum point of its marginal-cost curve.
b. it does not produce the level of output at which price equals marginal cost.
c. consumer surplus is maximized but not producer surplus.
d. producer surplus is maximized but not consumer surplus.
e. it operates on the downward sloping portion of the average-total-cost curve.
b
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If barbers in Mexico are just a productive as their counterparts in the United States then why do they earn lower wages?
What will be an ideal response?
If unemployment persists for a long period of time, the natural rate of unemployment rises
Indicate whether the statement is true or false
Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero). The non-cooperative outcome in this situation is
A) both firms bid $90. B) both firms bid $180. C) both firms bid $100. D) one firm bids $100, the other firm bids $180. E) both firms bid $50.
Jan has an income of $30,000 and pays $4,500 in taxes. When Jan's income rises to $40,000, her tax bill rises to $6,500. What is Jan's marginal tax rate?
A. 5 percent. B. 15 percent. C. 16.25 percent. D. 20 percent.