A monopoly produces widgets at a marginal cost of $20 per unit and zero fixed costs. It faces an inverse demand function given by P = 100 ? 4Q. What are the profits of the monopoly in equilibrium?

If a dollar buys more rice in the China. than in the U.S., then

a. the real exchange rate is greater than 1; a profit might be made by buying rice in the U.S. and selling it in China. b. the real exchange rate is greater than 1; a profit might be made by buying rice in China. and selling it in the U.S. c. the real exchange rate is less than 1; a profit might be made by buying rice in the U.S. and selling it in China. d. the real exchange rate is less than 1; a profit might be made by buying rice in China and selling it in the U.S.

In this graph showing welfare effects of a price floor when the government buys the surplus, the cost to the government, area c + d + f + g + h + i, ______.

a. demonstrates that price floors convey a net welfare gain to society b. is larger than the gain to producers, resulting in a deadweight loss c. is equal to the gain to producer and consumers, creating equilibrium d. allows producer surplus to grow while steadily maintaining consumer surplus