A monopoly definitely incurs an economic loss if
A) it produces where its marginal revenue equals its marginal cost.
B) its average total cost is greater than price.
C) it cannot perfectly price discriminate.
D) it price discriminates.
E) The statement errs because a monopoly cannot incur an economic loss.
B
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The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________
A) area A; area B + area C + area E + area F B) area A + area B + area C; area E + area F C) area E + area F; area A D) area B + area C + area D; area E + area F E) area A + area B + area C + area D; area E + area F
Which of the following statements is false?
A) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. B) Although some individuals may not be made better off as a result of international trade, both countries may be made better off overall. C) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. D) Not all individuals in both countries are made better off as a result of international trade.