Which of the following markets will have the largest deadweight loss?
A) A market that consists of perfectly competitive firms.
B) A market that consists of a single-price monopoly.
C) A market that consists of a perfect price discriminating monopoly.
D) None of the above. There is no deadweight loss as long as firms produce at the level of output where marginal revenue equals marginal cost.
B
You might also like to view...
Which of the following is a balance of payments account?
i. current account ii. past account iii. capital and financial account A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Using the aggregate expenditure model, the equilibrium level of the aggregate expenditure can occur when the economy is producing
A) only at above full employment. B) at full employment, above full employment, or below full employment. C) at either below full employment or at full employment but never at above full employment. D) only at below full employment. E) only at full employment.