Question 6 Consider a Market of a specific good whose struct

Question 6: Consider a Market (of a specific good) whose structure changes from Perfect Competit Monopoly. Then, the Producer Surplus: A. Necessarily increases, as the Market structure changes from Perfect Competition to B. Necessarily decreases, as the Market structure changes from Perfect Competition to C. May increase or decrease, as the Market structure changes from Perfect Competition to D. Remains constant, as the Market structure changes from Perfect Competition to Monopoly Monopoly Monopoly Monopoly Question 7: Consider a Market (of a good) whose structure changes from Perfect Competition to Monopoly. Then, the Consumer Surplus: A. Necessarily increases, as the Market structure changes from Perfect Competition to Monopoly Monopoly Monopoly B. Necessarily decreases, as the Market structure changes from Perfect Competition to XC. May increase or decrease, as the Market structure changes from Perfect Competition to D. Remains constant, as the Market structure changes from Perfect Competition to Monopoly Question 8: A government, whose goal is to conserve (reduce its use of) its natural resources (e.g., oil), should: A. Allow just a single company to extract the natural resource Allow only a few companies (e.g., two or three) to extract the natural resource C. Allow several dozens of companies to extract the natural resource D. Not care at all about the number of companies extracting the natural resource: the number of companies operating makes no difference to determining how soon the resource may be fully extracted Question 9: In the Competitive Market Long Run equilibrium, the amount of output a firm produces is: A. Always more than its cost minimizing output level Always less than its cost minimizing output level Always the same as its cost minimizing output level More than, less than, or as much as its cost minimizing output level

Solution

6. The correct answer is A.

7. The correct answer is B.

8. The correct answer is C.

9. The correct answer is C.