One Way a Monopoly Can Convert Additional Consumer Surplus into Economic

question 59

Multiple Choice

One way a monopoly can convert additional consumer surplus into economic profit is to

• A) lower prices.
• B) raise prices.
• C) price discriminate.
• D) become more competitive.
• E) produce where price equals average total cost.

Recognize the concept of cognitive dissonance and how it can be resolved.

Understand the reasons behind social loafing and the bystander effect.

Grasp the dynamics of conformity and group decision-making processes.

Identify the causes and consequences of prejudice and discrimination.

---

Definitions:

Net Earnings

The profit (or loss) of a business after all expenses have been deducted from revenues.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Net Earnings Per Share

A financial ratio calculated by dividing the net income of a company by the average number of its outstanding shares, indicating the company's profitability per share.

Stock Price

The cost of purchasing a single share of a company's stock, reflecting the value investors place on the company.