What happens to producer and consumer surplus

Assignment Help Business Economics

Reference no: EM131169372

What happens to producer and consumer surplus when a non-price discriminating monopolist increases output above its profit-maximizing level?

1. Both producer and consumer surplus increase.

2. Both producer and consumer surplus decrease.

3. Producer surplus increases and consumer surplus decreases.

4. Producer surplus decreases and consumer surplus increases

Reference no: EM131169372

Questions Cloud

Which of the following is not example of a barrier to entry : Which of the following is not an example of a barrier to entry?

Total utility is determined : Total utility is determined by: a. finding the additional utility gained from consuming one more unit of a product. b. dividing the marginal utility derived from consuming a good by its price. c. multiplying the quantity purchased of a good by the pr..

What is the unemployment rate of this economy : What is the unemployment rate of this economy? What is the labor force participation rate? Suppose that 1 million currently unemployed workers decide to no longer actively look for work.What is the unemployment rate of the economy now?

Data represents firm serving transportation market : The following data represents a firm serving a transportation market. Total Output Total Revenue Total Cost 0 $0 $1,000 1 $1,700 $2,000 2 $3,300 $2,800 3 $4,800 $3,500 4 $6,200 $4,000 5 $7,500 $4,500 6 $8,700 $5,200 7 $9,800 $6,000 8 $10,800 $7,000 9..

What happens to producer and consumer surplus : What happens to producer and consumer surplus when a non-price discriminating monopolist increases output above its profit-maximizing level?

Calculate the change in producer surplus due to sales tax : Let the market for cigarettes be characterized by the following information: Calculate the tax revenue in the post-tax equilibrium. Calculate the change in consumer surplus due to the sales tax. Calculate the change in producer surplus due to the sal..

What effect would rent controls have on value of vacant land : Who, other than the owners of rental units, loses as a result of rent controls? Who gains form rent controls? What effect would the imposition of rent controls have on the market price of an existing single-family house? What effect would rent contro..

Measured on the horizontal and food measured : The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to (-MPLF/MPLC ; -MPLC/MPLF) and it (becomes steeper; is constant; becomes fl..

Soda fountain sell ice cream in perfectly competitive market : Stephanie's Soda Fountain sells ice cream in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producing ice cream is $3.30, average varia..

User Account

All Pages