81.Why does a efficiency loss arise under monopoly rather than : 1413826
81.Why does a efficiency loss arise under monopoly rather than under perfect competition?
a.A monopolist charges a lower price for the product to gain market entry.
b.A monopolist sells a lesser quantity at a higher price.
c.There is a net increase in consumer surplus but a net decline in producer surplus.
d.There is an increase in producer surplus, consumer surplus remaining unchanged.
e.A monopolist sells a greater quantity than a perfect competitor.
NARRBEGIN: Figure 10.8
The following figure shows revenue and cost curves of a monopolist.
AR: Average revenue curve
MR: Marginal revenue curve
MC: Marginal cost curve
82.According to Figure 10.7, the profit maximizing price of the monopolist is:
83.According to Figure 10.7, what will be the price charged by a perfectly competitive firm?
84.According to Figure 10.7, the deadweight loss of monopoly is:
a.the area ABC.
b.the area BCD.
c.the area ACD.
d.the area P3P2AC.
e.the area P3P4DC.
NARRBEGIN: Figure 10.9
The figure given below shows the cost and revenue curves of a monopolist.
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
85.In Figure 10.9, what is the consumer surplus at the profit-maximizing levels of output and price?
86.Refer to Figure 10.9. Suppose that the market is perfectly competitive. The consumer surplus would be represented by the area _____.