Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.When this monopolist maximizes its profit, consumer surplus equals the area:
A. ABJ.
B. ACKJ.
C. AELJ.
D. ACN.
Answer: A
Economics
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If salsa and nacho chips are complements, an increase in the price of nacho chips would
a. increase the price of salsa. b. decrease the demand for salsa. c. increase the demand for salsa. d. have no effect on the demand for salsa.
Economics
Present value analysis suggests that the real rate of return on Social Security is
A. around 10% for workers of all income levels. B. roughly 3% for high-income earners and negative for low-income earners. C. more than 10% for high-income earners. D. roughly 3% for low-income earners and negative for high-income earners.
Economics