The Figure Below Shows the Market Equilibrium (Point B) at the Intersection

question 79

Multiple Choice

The figure below shows the market equilibrium (point B) at the intersection of demand and supply curves under perfect competition.Figure 11.5
D: Market demand curve
S: Market supply curve
-Assume that in Figure 11.5, the market is originally perfectly competitive but then becomes a monopoly. Compared with perfect competition, a monopoly would have:

• A)a price lower than P_PC.
• B)a quantity more than Q_PC.
• C)a greater consumer surplus.
• D)a deadweight loss.
• E)a lower producer surplus.

---

Definitions:

World Price

The price of a good or service in the international market, often used as a benchmark for comparing domestic prices.

International Trade

International trade involves the exchange of goods and services across international borders, allowing countries to expand their markets and pursue competitive advantages.

Tariffs

Taxes imposed by a government on imported goods and services to restrict imports or generate revenue.

Import Quotas

Restrictions set by a country on the quantity of goods that can be imported within a certain time frame to protect domestic industries.