To maximize profits, the discriminating monopolist sells abroad rather than selling additional units at home because:
a. the home market is just too competitive.
b. there would be more incentive for entry from other firms.
c. the market price at home would rise and the firm would lose customers.
d. it would lower total profits if it lowered its home price in order to sell the additional units.
Ans: d. it would lower total profits if it lowered its home price in order to sell the additional units.
You might also like to view...
According to the total revenue test, a price cut increases total revenue if demand is
A) inelastic. B) perfectly inelastic. C) elastic. D) unit elastic.
The process by which individuals limit their productive efforts to a particular activity instead of trying to produce directly everything that they need is known as
a. specialization. b. using absolute advantage. c. using exchange. d. scarcity.
State the law of demand and illustrate it. Explain what is meant by the term "price" in the law of demand
What will be an ideal response?
Which of the following is an open market purchase?
a. When private individuals sell government bonds b. When the Fed sells government bonds c. When private individuals purchase government bonds d. When bond dealers buy government bonds from the fed e. When the Fed buys government bonds