Author Question: How do the price, output, consumer surplus, economic profit, and total surplus for a single-price ... (Read 82 times)

ahriuashd · **on:** Jun 29, 2018

How do the price, output, consumer surplus, economic profit, and total surplus for a single-price monopoly compare to that of a competitive industry?

What will be an ideal response?

Question 2

If the production of a good gives rise to negative externalities, ________.

A) the fixed cost of production is zero
B) the variable cost of production is zero
C) the private cost of production exceeds the social cost of production
D) the social cost of production exceeds the private cost of production

frankwu0507 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

For the monopoly, price is higher, output is lower, consumer surplus is less, economic profit is larger, and total surplus is smaller relative to a competitive industry.

Answer to Question 2

D