If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be
A) zero.
B) $150.
C) $50.
D) $250.
C
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Diversification of assets cannot eliminate which kind of risk?
A. Idiosyncratic risk B. Market risk C. Individual risk D. Downside risk
Transfer prices should be set to so
A) to maximize profits for only one unit in a multi-unit firm. B) allow arbitrage with the external market place. C) to maximize profits for the overall firm. D) none of these choices.
if the govt levies $20 billion in taxes to finance additional spending on military weapons, the net impact on total employment will be
What will be an ideal response?
Refer to the graph shown. Area C plus area E is:
A. smaller than area A, because demand is inelastic between $30 and $40. B. larger than area A, because demand is elastic between $30 and $40. C. larger than area A, because demand is inelastic between $30 and $40. D. smaller than area A, because demand is elastic between $30 and $40.