Which of the following statements regarding perfect price discrimination is FALSE?
A) Only part of consumer surplus is captured by the firm as producer surplus.
B) For the firm, the market demand curve becomes the firm's marginal revenue curve.
C) The monopoly produces the output at which the marginal revenue equals the marginal cost.
D) No deadweight loss is created.
A
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At the competitive equilibrium:
A) the demand curve is tangential to the supply curve. B) the quantity demanded exceeds the quantity supplied of a good. C) the quantity supplied exceeds the quantity demanded of a good. D) the quantity demanded is equal to the quantity supplied of a good.
Whenever a bank's actual reserves exceed its desired reserves, the bank
A) can lend out additional funds. B) needs to call in loans. C) will go out of business. D) must increase the amount of its required reserves by obtaining more cash.