Monopolists use the hurdle method of price discrimination in order to:
A. produce the socially optimal level of output.
B. increase the demand for their good.
C. lower their marginal cost.
D. separate consumers on the basis of their reservation prices.
Answer: D
You might also like to view...
A socially optimal public health policy should expand the proportion of the population vaccinated:
A. until the marginal benefit of an additional vaccination is greater than the marginal cost of an additional vaccination. B. whenever the marginal benefit of an additional vaccination is positive. C. until the marginal benefit of an additional vaccination equals zero. D. until the marginal cost of an additional vaccination equals the marginal benefit of an additional vaccination.
Which of the following is a transfer payment?
a. The federal government's budget deficit b. Unemployment compensation payments c. Military spending d. Wages of government employees e. The excise tax on gasoline
Under a gold standard, a country with a trade deficit should expect
A. gold to flow out of the country to other countries. B. gold to flow into the country from other countries. C. the value of its currency to appreciate. D. the value of its currency to depreciate.
If the price is less than the average variable cost, the firm should produce
A. where ATC is minimized. B. where AVC is minimized. C. where MC=MR. D. zero.