False
Economic efficiency is optimal when the deadweight loss is zero
Economic surplus is maximized when deadweight loss is zero.
QUESTION 17 Economic efficiency is optimal when the deadweight loss is positive. True False
2. For each statement below, state if it is true or false. (a) The deadweight loss created by a monopolist that sets a uniform price is (b) The deadweight loss created by a monopolist that does first-degree price dis- (c) The deadweight loss created by a monopolist that sets the optimal two-part positive crimination is positive tariff is positive discrimination is positive
Question 1 True or false? (2 points) A positive externality does not lead to a deadweight loss because more of the a. good should be produced, not less. b. (2 points) Economies of scale and limited demand can form a natural barrier to entry that can create a natural oligopoly. (2 points) The Coase theorem implies that we never need to worry about regulating c. negative externalities as long as we only assign property rights to the polluter. d. (2...
Taxing goods with relatively inelastic demand will result in more "deadweight" efficiency loss per dollar of tax revenue than taxing goods with relatively elastic demand. True False
Question 49 (1 point) Deadweight loss will be larger when the demand curve is more inelastic. True False Question 50 (1 point) In general, economists believe it is better to tax elastic goods. True False Question 51 (1 point) Saved Governments will raise the most revenue if they tax the more inelastic goods. True False
true or false, explain if false (f) Efficiency is related to the size of the economic pie, whereas equity is related to how the pie gets sliced and distributed. X (g) The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.x
what is the deadweight loss after the tax? I know 24 is the optimal tax. Question 3: Negative Externalities Suppose that a factory sells tchotchkes to the people of City A. The inverse demand for the tchotchkes is P = 240 - 90d while the inverse supply curve is P = 3Qs. However, the factory is upstream of City A, and production of tchotchkes creates water pollution. Marginal damages from production are MD = 24. C. Suppose the government levies...
Question 58 1 pts True or False: Pure economic rent occurs when the opportunity cost of a resource is zero and there is a positive price for that resource in the market. o True O False Next
A monopolist produces less than the socially optimal amount, resulting in a “deadweight” loss for the society. Provide an intuitive explanation for the deadweight loss (i.e., what does it represent). Is it possible to achieve the socially optimal outcome if a monopolist is able to implement perfect price discrimination? Do the consumers prefer perfect price discrimination by a monopolist or perfect competition?
1. A monopolist produces less than the socially optimal amount, resulting in a "deadweight" loss for the society. Provide an intuitive explanation for the deadweight loss (i.e., what does it represent). Is it possible to achieve the socially optimal outcome if a monopolist is able to implement perfect price discrimination? Do the consumers prefer perfect price discrimination by a monopolist or perfect competition?
A monopolist produces less than the socially optimal amount, resulting in a “deadweight” loss for the society. Provide an intuitive explanation for the deadweight loss (i.e., what does it represent). Is it possible to achieve the socially optimal outcome if a monopolist is able to implement perfect price discrimination? Do the consumers prefer perfect price discrimination by a monopolist or perfect competition?