chapter 7/12/13/14

Question 1

what is social surplus

Answer 1

the sum of consumer and producer surplus

Question 2

what is Pareto efficiency

Answer 2

when no one can be made better off without making someone else worse off.

Question 3

the invisible hand

Answer 3

directs consumers and producers to maximize

Question 4

what is monopoly

Answer 4

one seller of a good or sevice with no close substitutes

Question 5

what is natural market power

Answer 5

1-the monopolist owns or controls a key resource necessary for production
2- there are economies of scale in production over the relevant range of output

Question 6

what are first, second and third degree discirimation

Answer 6

1-when each consumer is charged the maximum he/she can is willing to pay.
2-consumers charged different prices based on the characteristics of the purchase
3-consumers are charged different prices based on the characteristics of the customer/location