Which of the Following Markets Will Have the Largest Deadweight

question 381

Multiple Choice

Which of the following markets will have the largest deadweight loss?

• A) A market that consists of perfectly competitive firms.
• B) A market that consists of a single-price monopoly.
• C) A market that consists of a perfect price discriminating monopoly.
• D) None of the above. There is no deadweight loss as long as firms produce at the level of output where marginal revenue equals marginal cost.

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Definitions:

Hemichordata

A phylum of marine animals that share some traits with chordates, such as a dorsal nerve cord, but have distinct features like a stomochord.

Larval Tunicates

The juvenile stage of tunicates (marine invertebrates), which is free-swimming and undergoes metamorphosis into the adult form.

Superficially Resemble

To appear similar or alike on the surface, but possibly different in more profound or structural aspects.

Deuterostomes

Organisms characterized by undergoing deuterostomy during embryonic development, where the anus forms before the mouth.