If a monopolist engages in price discrimination, it will:
A. charge a competitive price to all its customers.
B. charge a higher price where individual demand is inelastic and a lower price where individual demand is elastic.
C. produce a smaller output than when it did not discriminate.
D. realize a smaller profit.
Answer: B
You might also like to view...
Which of the following would be a human capital investment?
a. On-the-job training programs. b. Health care programs. c. Formal education. d. All of these.
A graph showing the inverse relationship between the economy's rate of unemployment and rate of inflation is called the:
a. Laffer curve. b. aggregate expenditure model. c. Keynesian cross. d. Phillips curve. e. consumption curve.
Factory A can reduce emissions at a cost of $250 per ton. Factory B can reduce emissions at a cost of $400 per ton. In a system in which the government issues transferable pollution right at a price of $200 per ton:
a. Factory A can profit from selling its pollution rights to Factory B. b. Both firms have an incentive to buy pollution rights c. Factory B can profit from selling its pollution rights to Factory A. d. Both firms have an incentive to sell pollution rights.
The basic requirement of money is that it be:
A. authorized as legal tender by the central government. B. backed by precious metals-gold or silver. C. some form of debt or credit. D. generally accepted as a medium of exchange.