Relative to a perfectly competitive market, a monopoly results in
A) a gain in producer surplus equal to the gain in consumer surplus.
B) a gain in producer surplus equal to the loss in consumer surplus.
C) greater economic efficiency.
D) a gain in producer surplus less than the loss in consumer surplus.
D
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In the above figure, which of the following is TRUE regarding the movements from point A to B and from point C to D?
I) The movement from point A to B shows that the economy has chosen to produce 100 more jets. II) The movement from point C to D shows that the economy has chosen to produce 100 more jets. III) The movement from point A to B and from point C to D have the same opportunity cost. A) I and II B) I and III C) II and III D) I, II and III
Students arriving late to class are a potential negative externality because their tardiness may interrupt the instructor and distract students
Can you think of any way in which this externality could be curbed? That is, can you think of any methods that could be employedto internalize this negative externality?