The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is

What are the consequences of a firm exercising monopoly power?

A. Higher price and larger quantity sold. B. Higher price and smaller quantity sold. C. Lower price and larger quantity sold. D. Lower price and smaller quantity sold.

If the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a

a. 0.33 percent increase in the quantity demanded. b. 3 percent increase in the quantity demanded. c. 30 percent increase in the quantity demanded. d. 48 percent increase in the quantity demanded.