Use the following graph to answer the next question.
If the industry were served by a pure monopoly, the deadweight loss would be the area ________.
A. ACE
B. AEF
C. ACB
D. This can't be determined with the information provided in the graph.
Answer: A
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From the point of view of a particular country, capital outflows are:
A. purchases of domestic assets by foreigners. B. purchases of foreign goods or services by domestic households or firms. C. purchases of domestic goods or services by foreigners. D. purchases of foreign assets by domestic households or firms.
Which of the following is part of a firm's opportunity costs? I. wages II. utility costs III. interest on a bank loan IV. interest forgone on funds used to buy capital equipment
A) I and II B) III and IV C) I, II and III D) I, II, III and IV
Inflation rates over the last 40 years have generally:
A. decreased around the world. B. increased around the world. C. unchanged for developing nations and decreased for developed nations. D. decreased for developing nations and increased for developed nations.
Over all levels of output, if a firm's long-run average cost curve declines as output increases, then
A. there should be a large number of firms in the industry. B. small firms and large firms will have identical average costs. C. there should be only one firm in the industry. D. small firms would have lower average costs of production than large firms.