A monopolist engages in perfect price discrimination. What will happen to the consumer surplus? (1 point)

	It significantly increases as it absorbs the producer surplus.
	It disappears and becomes deadweight loss.
	It decreases based on the elasticity of demand.
	It is unchanged.
	It is entirely converted to producer surplus.

41.

(04.04 MC) Assuming a market with monopolistic competition, in which situation would a firm generate positive economic profit in the short run? (1 point)

	The price exceeds the average total cost.
	The price is equal to the average total cost.
	The marginal revenue is equal to the marginal cost.
	The price is less than the average total cost.
	The marginal revenue exceeds the marginal cost.

42.

(04.05 MC) In the context of oligopoly, which of the following describes a situation in which no firm can improve its outcome by independently changing its course of action? (1 point)

	Price collusion
	Prisoner's dilemma
	Nash equilibrium
	Dominant strategy
	Game theory

43.

(04.05 HC) Company A and Company B are competing oligopolists. Both companies are considering increasing or maintaining their prices. The payoff matrix shows the profits of the companies in millions based on their possible actions.

	Company B
Company A		Increase Price	Maintain Price
Increase Price	$50, $40	$35, $30
Maintain Price	$55, $45	$60, $35

The government offers a $5 million subsidy to maintain current pricing. What is the expected outcome of the new payoff matrix, given the subsidy? (1 point)

	The Nash equilibrium changes, and both companies will maintain their prices.
	The Nash equilibrium changes, and both companies will increase their prices.
	The Nash equilibrium remains the same, and both companies will increase their prices.
	Company A will increase its price, while Company B maintains its price.
	Company A will maintain its price, while Company B increases its price.

44.

(05.01 MC) Use the graph to answer the question that follows. (1 point) Based on the chart above, if the product sells at a price of $0.50 per unit, what is the marginal revenue product of the second unit of labor?

	$10
	$15
	$30
	$50
	Indeterminate