-If the Market Becomes Uncompetitive,a Portion of the Consumer Surplus

question 72

Multiple Choice

-If the market becomes uncompetitive,a portion of the consumer surplus is passed on to those producers still in the market in the form of higher profits.If the new output is 500 000 units,the amount of consumer surplus transformed into producer surplus is:

• A)$0.25 million
• B)$0.5 million
• C)$1 million
• D)$5.5 million
• E)$1.5 million

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Definitions:

Productivity Growth

An increase in the efficiency of producing goods or services within an economy, often leading to more output for the same amount of inputs.

Raise Savings

Encouraging or implementing strategies to increase the amount of money that individuals or entities set aside for future use rather than spending immediately.

NIC

Newly Industrialized Country, referring to nations experiencing rapid economic growth and industrialization.

LDC

Stands for Least Developed Country, a term used to describe countries with severe structural impediments to sustainable development and low per capita income levels.