The Figure Given Below Shows the Demand Curves of Two

question 98

Multiple Choice

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-The long-run equilibrium price-output combination for a monopolist is economically inefficient because:

• A)it does not operate on the minimum point of its marginal-cost curve.
• B)it does not produce the level of output at which price equals marginal cost.
• C)consumer surplus is maximized but not producer surplus.
• D)producer surplus is maximized but not consumer surplus.
• E)it operates on the downward sloping portion of the average-total-cost curve.

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Definitions:

Intent

The purpose or mindset with which an individual acts, significant in both criminal and civil law to determine culpability or liability.

Principal

In agency law, a person who agrees to have another, called the agent, act on his or her behalf.

Agency Relationship

A legal and fiduciary relationship between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in business dealings.

Agent

A person who agrees to represent or act for another, called the principal.