When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a transfer of benefits from the consumer to the producer.
b. a loss in total welfare.
c. the higher marginal costs incurred by the monopolists in comparison to competitive firms.
d. the higher marginal revenues gained by the monopolists in comparison to competitive firms.
a
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Dove policies advocate
a. less stability in output if greater price stability can be achieved. b. more stability in output if greater price stability can be achieved. c. more stability in output even at the cost of more price instability. d. stable prices at any cost. e. more stability in tax revenues even at the cost of more unemployment.
The unemployment rate is one measure of the economic health of our nation. Explain how the existence of discouraged workers and underemployed workers may undermine the usefulness of the unemployment rate for this purpose