"Unlike a monopoly, consumer surplus in a perfectly competitive market is zero." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. As long as the market demand curve is downward sloping, consumer surplus, which is represented by the area between the demand curve and the market supply curve, is not zero. There is no deadweight loss, however.
Economics
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If the price of automobiles was to increase, then
A) the quantity of gasoline demanded would decrease. B) the demand for gasoline would increase. C) the demand for gasoline would decrease. D) the supply of gasoline would increase.
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In business, the "bottom line" refers to the very last line of a(n):
A. income statement, which shows profit. B. balance sheet, which shows profit. C. income statement, which shows total revenue. D. balance sheet, which shows total income.
Economics