The More Block Prices a Monopoly Can Set Instead of Setting

question 44

Multiple Choice

The more block prices a monopoly can set instead of setting a single price,

• A) the smaller the deadweight loss.
• B) the more producer surplus.
• C) the larger the total welfare.
• D) All of the above.

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Definitions:

Unionization Rate

The percentage of a particular population of workers that belongs to labor unions; alternatively, the percentage of a population of workers that is represented by one union or another in collective bargaining.

Union Members

Individuals who belong to an organization that represents workers in negotiations with employers over wages, benefits, and working conditions.

Shirking

Shirking describes when employees underperform or exert less effort than expected because of insufficient incentives or the absence of effective monitoring.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price; the demand or supply curve is vertical.