Consumers in a monopolistically competitive market do not receive any consumer surplus because the price paid for the product exceeds the marginal cost of production
Indicate whether the statement is true or false
FALSE
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Economists are unanimous in their belief that advertising is socially inefficient
a. True b. False Indicate whether the statement is true or false
An important assumption in the theory of public choice is that
A. scarcity does not exist in the government sector. B. individuals will only operate outside the political process when their well-being is involved. C. individuals will act within the political process to maximize their collective well-being. D. individuals will act within the political process to maximize their individual well-being.
The value of the four-firm concentration ratio that many economists consider indicative of the existence of an oligopoly in a particular industry is
A) anything greater than 10 percent. B) anything greater than 40 percent. C) anything greater than 30 percent. D) anything greater than 20 percent.
Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.