Refer to figure 15 5 which area represents the total

  • No School
  • AA 1
  • 258

This preview shows page 76 - 79 out of 258 pages.

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.
Image of page 76
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.
Image of page 77
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
Image of page 78
Image of page 79

You've reached the end of your free preview.

Want to read all 258 pages?

  • Fall '19

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes