Why is the monopoly total welfare lower than the competitive total welfare?
What will be an ideal response?
A monopoly restricts output relative to the competitive level. This generates a deadweight loss. Consumers value the units the monopolist does not produce more than the cost of producing those units. Thus, total welfare is lower with a monopolist.
Economics
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Refer to Figure 13-4. Given the economy is at point A in year 1, what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?
A) 0.3% B) 1.1% C) 2.7% D) 3.7%
Economics
The price of ________ in terms of ________ is referred to as the real exchange rate
A) foreign goods; foreign services B) domestic goods; the domestic currency C) domestic goods; foreign goods D) domestic goods; domestic services
Economics