Consider a monopolist who charges a single price to all of its customers. If this monopolist starts price discriminating, its output will ________ and its profit will ________.
A. fall; rise
B. fall; fall
C. rise; rise
D. rise; fall
Answer: C
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Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability .If three bidders show up at the auction, and two of the bidders are high-value, what would the winning price be?
a. Just above $100 b. $100 c. Just above $70 d. $70
Picture the curve. The total revenue curve originates at the origin
Indicate whether the statement is true or false
If an input must be increased for output to increase, it is called a
A. unchangeable input. B. variable input. C. changeable input. D. fixed input.
Horizontally summing different supply curves assumes
A) that individual firms cannot influence the good's price. B) that all firms operate in collusion. C) that only firms who volunteer are included in the summation. D) all firms produce the same amount of output.