Which of the following is TRUE?
A) Monopoly results in a higher quantity of output being sold compared with perfect competition.
B) Price discrimination occurs when there are differences in prices that reflect differences in marginal cost.
C) Charging all customers the same price when costs vary can actually be a case of price discrimination.
D) Price discrimination guarantees that the monopolist will make a profit.
C
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Innovation creates the opportunity to:
A. quickly exit industries. B. lose money spent on research and development. C. earn positive economic profits. D. sustain zero economic profits in a single industry in the long run.
Suppose at the current level of labor used, MRP = $20 and MFC = $20. To maximize profits, the firm should
A) hire more labor. B) reduce the level of labor. C) maintain the current level of labor. D) shut down.
A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise in the foreign price level, or a fall in the U.S. price level
Indicate whether the statement is true or false
An example of overt collusion is
a. a cartel. b. price leadership. c. tacit collusion. d. a perfectly contestable market.