Let P be the output price for a particular good. Why is the value P*MPL greater than MRPL for a monopolist?
A) The monopolist is not as technically efficient as firms operating under perfect competition.
B) The monopolist hires less labor, so MPL is higher under a monopoly than under perfect competition.
C) The monopolist sets a price that is higher than MR.
D) A and C are correct.
E) B and C are correct.
E
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Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on: a) efficiency. b) consumer surplus. c) economic profit in the long run
What will be an ideal response?
During 1980-2009, the countries achieving the most rapid growth of real GDP were nearly all
a. high-income developed economies. b. low-income less developed economies at the beginning of the period. c. South American economies. d. European economies. e. African economies.