The economic inefficiency of a monopolist can be measured by the
a. deadweight loss.
b. value of the unrealized trades that could be made if the monopolist produced the socially-efficient output.
c. area above marginal cost but beneath demand from the monopoly output to the socially-efficient output.
d. All of the above are correct.
d
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The increasing popularity of hotdogs in a food joint has pushed up their price, making it unaffordable for many students living in the surrounding areas. This is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) free-rider problem
Refer to Figure 24-1. Ceteris paribus, an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.