According to the graph, if the perfectly competitive outcome and monopoly outcome are compared, we can see that the:
This graph shows the cost and revenue curves faced by a monopoly.
A. monopoly creates deadweight loss.
B. perfectly competitive firm would lose money in this industry.
C. perfectly competitive firm would produce Q1 units.
D. monopolist would charge P3 and the perfectly competitive firm would charge P1.
A. monopoly creates deadweight loss.
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The graph shows the market for textbooks. If the government introduces a tax of $20 a textbook, then the price paid by buyers
A) increases by $20. B) increases to $80 a textbook. C) decreases to $60 a textbook. D) is $70 a textbook. E) does not change because the demand for textbooks is perfectly elastic.
Suppose that an economy's labor became more productive between year 1 and year 2. We could conclude that this economy's
A. real GDP remained constant. B. production possibilities frontier shifted outward. C. production possibilities frontier shifted inward. D. capital stock increased by 3%.