Consider a Market (of a specific good) whose structure changes from Perfect Comp
ID: 1158230 • Letter: C
Question
Consider a Market (of a specific good) whose structure changes from Perfect Competit Monopoly. Then, the Producer Surplus: uestion 6: A. Necessarily increases, as the Market structure changes from Perfect Competition to B. Necessarily decreases, as the Market structure changes from Perfect Competition to C. May increase or decrease, as the Market structure changes from Perfect Competition to D. Remains constant, as the Market structure changes from Perfect Competition to Monopoly Monopoly Monopoly Monopoly Question 7: Consider a Market (of a good) whose structure changes from Perfect Competition to Monopoly. Then, the Consumer Surplus: A. Necessarily increases, as the Market structure changes from Perfect Competition to Monopoly B. Necessarily decreases, as the Market structure changes from Perfect Competition to Monopoly XC. May increase or decrease, as the Market structure changes from Perfect Competition to Monopoly D. Remains constant, as the Market structure changes from Perfect Competition to Monopoly Question 8: A government, whose goal is to conserve (reduce its use of) its natural resources (e.g., oil), should: A. Allow just a single company to extract the natural resource Allow only a few companies (e.g., two or three) to extract the natural resource C. Allow several dozens of companies to extract the natural resource D. Not care at all about the number of companies extracting the natural resource: the number of companies operating makes no difference to determining how soon the resource may be fully extracted Question 9: In the Competitive Market Long Run equilibrium, the amount of output a firm produces is: A. Always more than its cost minimizing output level Always less than its cost minimizing output level Always the same as its cost minimizing output level More than, less than, or as much as its cost minimizing output level 4Explanation / Answer
Answer 6 : When a market of a specific goods structure changed from perfect competitive to monopoly than the producer surplus may increases. it depends and upon the market demand. As it depend upon the demand of the market, if monopoly chargers higher prices than the producer surplus increases.
Answer 7: In this case consumer surplus necessary decreases as there is change in the structure of the market. Price of the goods is higher and consumer pays more amount in goods and services.
Answer 8 : It allows just only few firms to enter into the market so that resources should utilised properly and not depleted the resources.
Answer : In perfect competitive market, long run equilibrium the amount of output is equal to always same as it's cost minimizing output level. It means that amount of output is equal where marginal revenue is equal to marginal cost.
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