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:

Hold-Off Circuit

A control circuit used in hydraulic braking systems, designed to delay the hydraulic pressure application to certain parts of the system.

FMVSS 121

The Federal Motor Vehicle Safety Standard that sets the requirements for air brake systems in commercial vehicles in the United States.

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Tanks used in vehicles, especially those with pneumatic systems, to store compressed air for various functions, like braking and suspension.

Air Brake Circuit

An arrangement of components including air tanks, hoses, valves, and actuators, designed to operate brakes using compressed air.