The producer surplus to a monopolist must be
A) less than zero or the firm is in violation of anti-trust statutes.
B) at least as great as the producer surplus in a competitive market.
C) positive, otherwise why would the monopoly produce?
D) the same as for a competitive market.
B
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Which of the following will most likely result from a decrease in government spending?
A) An increase in output B) An increase in the price level C) An increase in employment D) A decrease in aggregate supply E) A decrease in aggregate demand
Which of the following best explains why so many persons with incomes below the poverty threshold income level work very little or not at all?
a. They confront high implicit marginal tax rates. b. They do not enjoy income as much as other people. c. There are no jobs for low-skill workers. d. They often face very low explicit marginal tax rates.