As a monopolist expands its output:
A) the difference between the demand curve and the marginal revenue curve decreases.
B) the difference between the demand curve and the marginal revenue curve increases.
C) the slope of the demand curve decreases, while the slope of the marginal revenue curve increases.
D) the slope of the demand curve increases, while the slope of the marginal revenue curve decreases.
B
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What will be an ideal response?
One way to remove the excess labor supply problem from a minimum wage policy is to have the government hire all unemployed workers at the minimum wage. What is the key drawback of this version of a minimum wage policy?
A) The deadweight loss may increase substantially. B) The cost to the government may be very large. C) Consumer surplus losses increase further. D) A and B are correct. E) B and C are correct..