- 18 Following Up On Questions 16 17 As A Result Of The Importation Of Mexican Tomatoes Described In Question 2 Consume 1 (86.13 KiB) Viewed 39 times
18. Following up on questions 16-17: As a result of the importation of Mexican tomatoes described in question 2, consumer surplus will: a) increase by 100. b) decrease by 100. c) increase by 156.25. d) remain unchanged. e) fall to zero because all social welfare will go to tomato producers. 19. In comparing a “pure" monopoly to a "pure" monopsony, all of the following statements are true except: a) Monopoly refers to a single seller, and monopsony refers to a single buyer. b) The monopolist's marginal revenue curve and the monopsonist's marginal expenditure curve are both perfectly elastic. c) The monopolist's marginal revenue curve lies below its average revenue curve; the monopsonist's marginal expenditure curve lies above its average expenditure curve. d) The monopolist sets a price above marginal revenue, and the monopsonist sets a price below marginal expenditure. e) Relative to a comparable perfectly competitive market, a monopoly leads to reduced consumer surplus and a monopsony leads to reduced producer surplus.