When a Monopoly Maximizes Profit,the Loss of Surplus by Consumers

question 245

Multiple Choice

When a monopoly maximizes profit,the loss of surplus by consumers is _____ the monopolist's gain in profit.

• A)less than
• B)equal to
• C)more than
• D)sometimes more than and sometimes less than

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Definitions:

Least Squares Regression

A statistical method used to find the best-fitting line through a set of points by minimizing the sum of the squares of the vertical distances of the points from the line.

Calories

Calories are units of energy used to quantify the amount of energy stored in food and how much energy is utilized by the body.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, which is commonly used as a sweetener in food.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.