172. Refer to Figure 15-5. Which area represents the total surplus lost due to monopoly pricing? a. Triangle bde.b. Triangle bge.c. Rectangle acdb.d. Rectangle cfgd.ANS: B PTS: 1 DIF: 2 REF: 15-3 TOP: Deadweight loss MSC: Analytical 173. When the government creates a monopoly, the social loss may include convince lawmakers to continue the monopoly. TOP: Welfare MSC: Interpretive 174. If a social planner were running a monopoly, that planner could achieve an efficient outcome by charging the pricethat is determined by the curve. and the demand curve. the demand curve.
the marginal revenue curve. TOP: Welfare MSC: Analytical Chapter 15/Monopoly 653 175. The deadweight loss that arises from a monopoly is a consequence of the fact that themonopoly price. equals marginal cost. TOP: Deadweight loss MSC: Interpretive 176. Which of the following statements is correct? a. The benefits that accrue to a monopoly’s b. The deadweight loss that arises in monopolyc. The deadweight loss caused by monopoly is owners are equal to the costs that are incurred by consumers of that firm's product. stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity. similar to the deadweight loss caused by a tax on a product.
d. The primary social problem caused by ANS: C PTS: 1 DIF: 3 REF: 15-3 monopoly is monopoly profit. TOP: Deadweight loss MSC: Interpretive Figure 15-6 177. Refer to Figure 15-6. To maximize total surplus, a benevolent social planner would choose which of the followingoutcomes? unit unit unit unit TOP: Total surplus MSC: Analytical
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- Fall '19