A monopolistic competitor earns zero economic profits if ________
A) price is higher than average total cost
B) price is lower than marginal cost
C) price is equal to marginal cost
D) price is equal to average total cost
D
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Explain why it is highly unlikely that the world's oil reserves will be depleted within the next 40 years
What will be an ideal response?
Which of the following is an example of peak-load pricing?
A) Charging less for vacations to Hawaii during December and January B) Charging more for electricity on hot days C) Setting price equal to marginal cost when there is a capacity constraint D) Selling excess capacity at lower prices
In the above figure, the difference between the competitive industry price and that of the monopolist is
A) 0B. B) 0A. C) AB. D) CE.
Sellers can gain profits from price discrimination because
A. Charging different prices based on willingness to pay can increase revenues without increasing costs. B. Total revenues are maximized when all buyers pay the same price. C. Total expenses are less with price discrimination. D. Different prices charged to different customers can lower total revenue.