Econ

Refer to the figure. If the market is competitive, price and output in the market would be:

p1 and q2

Refer to the figure. If all firms in the market form a successful cartel, price and output in the market would be:

p2 and q1

Consumer surplus under competition is represented by:

triangle adf

(Figure: Monopoly Markup) Refer to the figure. The deadweight loss attributable to monopoly is:

triangle cef

What is the dollar value of wasted resources as a result of prohibiting trade in this market?

2,500

Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

5,000

Refer to the four panels in the figure. Which panel shows a competitive firm making an economic loss?

Panel A

Which panel shows the typical shape of the average cost curve in a competitive market?

Panel A

Refer to the four panels in the figure. Which panel shows a competitive firm making zero economic profits?

Panel B

Refer to the four panels in the figure. Which panel shows a competitive firm making positive economic profits?

Panel C

(Figure: Monopoly Markup) Refer to the figure. Consumer surplus under monopoly is represented by:

triangle abc