Author Question: The value of resources devoted to rent seeking will A) at most equal the monopoly's economic ... (Read 114 times)

soccerdreamer_17 · **on:** Jun 29, 2018

The value of resources devoted to rent seeking will

A) at most equal the monopoly's economic profit.
B) reduce deadweight loss.
C) reduce consumer surplus.
D) raise output to an efficient level.

Question 2

The state Department of Agriculture raised the minimum price for a gallon of milk in the city on Tuesday to 4.37.

If you've got two or three kids and you're living on a fixed income and you're paying half your income on rent, Gioia said, then you're really in a bind and you're making choices you should never have to make. If even after this price increase Gioia's marginal utility per dollar is higher for milk than for other goods, what should Gioia do? A) increase her consumption of milk
B) decrease her consumption of milk
C) not change her consumption of milk
D) increase her consumption of milk only if her income increases