If a perfectly competitive market becomes a monopoly and the costs do not change, which of the following allocations of costs and benefits applies?
A) The producer benefits, but consumers and society are harmed.
B) The producer and society are harmed, but consumers benefit.
C) The producer and society benefit, but consumers are harmed.
D) The producer is harmed, but consumers and society benefit.
A
You might also like to view...
What does a consumption possibilities frontier represent?
In a system in which there is an administered exchange rate, what is the term used when the government sets the rate higher to buy fewer units of foreign currency?
A) a revaluation B) an appreciation C) a depreciation D) a devaluation
Small differences in growth rates can create large differences in income levels because of:
A. Say's Law. B. specialization. C. compounding. D. the division of labor.
The price elasticity of demand for labor will be smaller, the
A) greater is the price elasticity of demand for the final product. B) easier it is to employ substitute inputs in production. C) smaller is the proportion of wage costs in the total cost of production. D) longer is the time period under examination.