When efficiency is attained, the consumer surplus
A) must be larger than the producer surplus.
B) must be smaller than the producer surplus.
C) must equal the producer surplus.
D) can be either smaller than or larger than but cannot equal the producer surplus.
E) can be smaller than, equal to, or larger than the producer surplus.
E
You might also like to view...
Suppose that initially there is no public debt. Using the above table, the public debt over this four year period would have
A) increased by $215. B) decreased by $100. C) increased by $1,375. D) decreased by $1,590.
Regulators and supervisors of banks are challenged by all of the following, except:
A. globalization of financial services. B. technological innovation. C. the use of new financial instruments that shift risk without shifting ownership. D. reinforcement by Congress of functional and geographic barriers in banking.
What is the difference between GDP and GNP?
What will be an ideal response?
Consider a monopolist attempting to engage in limit pricing with total costs C(Q) = 200 + 10Q. The market (inverse) demand for its product is P = 150 ? 2Q. Currently, the monopolist produces 40 units of output. Assuming the potential entrant has the same cost structure as the incumbent monopolist, is it profitable for the entrant to produce 20 units of output?
A. No, since the market price of $70 is less than the average total cost of producing 20 units. B. No, since the market price of $30 is less than the average total cost of producing 20 units. C. Yes, since the market price of $70 is greater than the average total cost of producing 20 units. D. Yes, since the market price of $30 is greater than the average total cost of producing 20 units.