The deadweight loss caused by a monopoly is the area:
a. between the demand curve and the marginal cost curve and between the profit-maximizing quantity and the efficiency quantity.
b. between the demand curve and the marginal revenue curve and between the profit-maximizing quantity and the efficiency quantity.
c. under the marginal revenue curve and between the profit-maximizing quantity and the efficiency quantity.
d. under the marginal cost curve and the marginal revenue curve and between the profit-maximizing quantity and the efficiency quantity.
a
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If the U.S. purchases oil from Venezuela, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.
Economists build economic models by
a. generating data. b. conducting controlled experiments in a lab. c. making assumptions. d. reviewing statistical forecasts.
If 1 euro is priced at $1.25 and if 1 euro will also buy 88 Japanese yen($1 = ¥88), in equilibrium, with no arbitrage opportunities, how much is the cross rate between the yen and the dollar (yen-dollar rate)?
a. ¥150/$ b. ¥70.4/$ c. ¥20/$ d. ¥5/$
Scarcity implies that people must
A. make choices. B. be selfish. C. earn as much as income as they are able to. D. be irrational.