When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a loss in total welfare.
b. a transfer of benefits from the buyer to the seller.
c. the higher marginal costs incurred by the monopolists in comparison to competitive firms.
d. All of the above are correct.
b
You might also like to view...
The natural rate of unemployment
A. increases during recessions. B. equals the sum of frictional and cyclical unemployment. C. equals the sum of frictional and structural unemployment. D. is always less than full employment rate of unemployment.
Which of the following statements about the Keynesian model is correct?
a. The economy would achieve full employment if left free from destabilizing government policies. b. Active monetary is always effective while fiscal policies is rarely so. c. Both Keynesians and classicists reach the same policy conclusions, but for different reasons. d. The economy is inherently unstable because of the instability of aggregate demand, which is primarily due to unstable expectations. e. both b and d.