In a single-price monopoly market
a. total benefit (the sum of consumer and producer surplus) is as large as it can possibly be
b. price and output are higher than they would be in an otherwise similar perfectly competitive market
c. price and output are lower than they would be in an otherwise similar perfectly competitive market
d. the quantity produced is artificially low, thereby creating an inefficiency
e. the price charged is artificially low, thereby creating an inefficiency
D
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If a market is shared equally by 100 firms, the Herfindahl-Hirschman Index is
A) 1/100. B) 1/50. C) 50. D) 100.
At a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225 . The firm
a. has a profit of $25 per unit of output. b. should shut down if its short-run average fixed cost is less than $25. c. has a loss of $100 per unit of output. d. should shut down if its short-run average variable cost exceeds $25.