A price discriminating monopolist having identical costs in two separated markets should charge a higher price in that market:
a. which has a higher demand.
b. which has a more elastic demand.
c. which has a less elastic demand.
d. which has a higher marginal revenue.
c
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Mexico City is notorious for its excessive pollution. Mexico's measure of GDP is
A) increased by the estimated value of the pollution's harm. B) not affected by the estimated value of the pollution's harm. C) changed by the pollution only when comparing its GDP with the U.S. GDP. D) decreased by the estimated value of the pollution's harm. E) None of the above answers is correct.
The payment of wages by a firm is an example of:
A) an explicit cost of production. B) an implicit cost of production. C) an irreversible cost of production. D) a long-run cost of production.
Which of the following will not increase when net taxes decrease?
a. Saving b. Disposable income c. Consumption d. Government expenditure e. GDP
Explain the problem encountered by successive monopolies? How can the supplier and the producer overcome this problem?