Consumer surplus is the area ( ).
A. above the supply curve and below the price.
B. below the supply curve and below the price.
C. below the demand curve and above the price.
D. below the demand curve and below the price.
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The inefficiency of monopoly is caused by ( ).
A. deficient production of monopoly.
B. overproduction of monopoly.
C. monopolistic profit.
D. monopolistic loss.
If the marginal cost curve is below the average total cost curve, ( ).
Average total cost increases.
B. Average fixed cost increases.
C. Average total cost achieves its minimum.
D. Average total cost decreases.
Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work?
A. Pat should always take the bus because it costs $0.50 less.
B. Pat should always drive because it saves half an hour.
C. Pat should drive if saving a half hour is worth $0.50 or more.
D. Pat should take the bus if a half hour of time is worth $0.50 or more.
Amy is thinking about going to the movies tonight. A ticket costs $7 and she will have to cancel her dog-sitting job that pays $30. The cost of seeing the movie is ( ).
A. $7.
B. $30.
C. $37.
D. $37 minus the benefit of seeing the movie.
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