The demand curve in its home market is P = 200 - Q; the demand curve in its foreign market is P = 160 - 2Q; and its marginal cost is a constant $20 per unit. What is the discriminating monopolist's price in the domestic market?
a. $90
b. $110
c. $70
d. $35
Ans: b. $110
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A) that the degree of pass through varies across nations, time and industries. B) that the degree of pass through varies across nations. C) that the degree of pass through varies across time and industries. D) that the degree of pass through varies across industries.
If the exchange rate between the U.S. dollar and Japanese yen changes from $1 = 100 yen to $1 = 90 yen, then
A. Japanese tourists visiting the United States will benefit. B. U.S. auto producers and autoworkers will lose. C. All Japanese producers and consumers will lose. D. U.S. consumers of Japanese TV sets will benefit.
According to the text, the main reason for people to hold money is
A) because they are irrational. B) to use it for different reasons. C) to tell other people how rich they are. D) to enjoy looking at the pictures of past leaders.
Customer service representatives who have lost their jobs as a result of call centers being outsourced to India are an example of
A) structural unemployment. B) voluntary unemployment. C) frictional unemployment. D) cyclical unemployment.