If different markets for a product produced by a monopolist can be separated and if the elasticity of demand differs between the two markets, then the monopolist will
A. go out of business.
B. charge a single price in all markets.
C. sell the product in only one of the markets with inelastic demand curves.
D. be able to make higher profits by using price discrimination.
Answer: D
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A Vickery auction is
a. Strategically equivalent to an English auction b. Does not need to have bidders show up at the same time or place c. All of the above d. None of the above
In the circular flow model of the economy, the resource market is where
a. consumers purchase consumer goods and services b. firms purchase goods and services c. consumers supply goods and services d. firms purchase labor, land, and capital e. consumers purchase labor and capital
Monopolistic competitors and perfect competitors are alike in
A. having horizontal demand curves. B. zero economic profit in the short run. C. zero economic profit in the long run. D. relying on advertising to attract buyers to their products.
If the supply of a resource is perfectly price inelastic then its opportunity cost is zero
Indicate whether the statement is true or false