The Expression "There's No Such Thing as a Free Lunch

question 51

Multiple Choice

The expression "there's no such thing as a free lunch" means that:

• A) services may be free, but goods are never free.
• B) even if a good or service has a price of zero, it has a cost.
• C) charitable organizations should not serve free lunches to the poor.
• D) poor people are really the ones who pay for their allegedly free lunches.
• E) someone has to pay the market price for a good or service.

Understand the concept of profit maximization for monopolies and how it differs from perfect competition.

Identify and calculate marginal cost, marginal revenue, quantity effect, and price effect in monopoly settings.

Understand the implications of price discrimination and perfect price discrimination for producer surplus and total revenue.

Analyze the concept of deadweight loss in the context of monopoly and its impact on social welfare.

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