. Suppose that the competitive market for rice in Japan uddenly monopolized. The
ID: 1116112 • Letter: #
Question
. Suppose that the competitive market for rice in Japan uddenly monopolized. The effect of such a were s change would be a. To decrease the Japanese price of rice b. To decrease the Japanese level of consumer surplus. c. To decrease the Japanese level of producer surplus. d. To increase the consumption of rice by the Japanese 2. Which of the following is NOT associated with a high degree of monopoly power? a. An inelastic demand curve for the firm. b. A small number of firms in the market. c. Significant price rivalry among firms in the market. d. Significant barriers to entry 3. Deadweight loss refers to the a. Socially unproductive amounts of money spent to obtain or acquire a monopoly b. Net loss in consumer and producer surplus due to monopoly pricing e. Lost consumer surplus due to monopolistic pricing d None of the above . A monopsonist will buy units of output than a if there were a large number of buyers, and pay per unit. a. Fewer. less. b. More; less. c. Fewer, more. d. More: moreExplanation / Answer
Answer 1 - Suppose competitive market for rice in Japan were suddenly monopolized. A monopolist would set higher price of its product and sell fewer quantity. It result loss in consumer surplus. The sudden change in market structure would decrease Japanese consumer surplus.
Option B is the correct answer.
Answer 2 - There is monopoly in the market, thus price rivalry is not possible. High degree of monopoly does not include price rivalry among firms in the market.
Option C is the correct option.
Answer 3 - 'Deadweight loss' is the net loss of consumer and producer surplus due to monopoly price.
Option B is the correct answer.
Answer 4 - A monopsonist will buy ''more' unit of output than a if there were large number and pay ''less'' per units. A monopsonist market has only buyer therefore it has total control over demand. A monopsonist can influence price.
Option B is the correct answer.
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