A monopolist sells its output in two markets, each with different demand curves as shown in this figure. If the marginal cost is identical in both markets, the monopolist should charge a ______ price in the inelastic market, represented by the demand curve ______.
Fill in the blank(s) with the appropriate word(s).
Answer: higher; D2
You might also like to view...
Which of the following is NOT an example of common property?
A) a trampoline B) air C) gravity D) sunshine
When entry barriers are low, firms in a competitive price-searcher market
a. can expect many new rivals to enter regardless of current profitability. b. can expect competing firms to enter the market if the activity is profitable. c. can never earn economic profit. d. will always be able to earn economic profit.
Suppose that an expected increase in ethanol demand increases the intercept of the demand curve in the previous question(question 57)by $1.00. If corn production stays at 12 billion bushels, the price of corn will be
A. $3.00 B. $4.00 C. $5.00 D. $6.00
Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per 8-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MP of the second barber is
A. 42 haircuts. B. $240. C. 18 haircuts. D. $108.