At the efficient level of production, ________
A) producer surplus must be greater than consumer surplus
B) consumer surplus must be greater than producer surplus
C) there is no deadweight loss
D) the market price is greater than the monopoly price
C
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What does elasticity of demand measure?
a. how responsive consumers are to advertising b. how responsive consumers are to price changes c. how much consumers are affected by layoffs d. how much consumers are affected by inflation
The table above shows the production possibilities for an economy
Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of ________ moving down along the PPF. A) books decreasing B) bread decreasing C) bread increases D) books is constant E) books and bread are both increasing