At the current price of a good, Al's consumer surplus equals 15 and Ben's consumer surplus equals 15. By using two-part pricing, a monopolist could increase his profit by
A) 8.
B) 16.
C) 15.
D) 30.
D
You might also like to view...
Because most gas stations are small relative to the market in which they operate and gasoline is fairly homogeneous, the market for gasoline is considered to be perfectly competitive
Indicate whether the statement is true or false
Which type of unemployment leads to a natural rate of unemployment above zero?
A. The natural rate of unemployment is always zero. B. Frictional unemployment C. Unemployment of government workers D. Cyclical unemployment
Mercantilism is a doctrine that holds that exports are good for a country, whereas imports are harmful.
Answer the following statement true (T) or false (F)
What should happen to the equilibrium interest rate and the corresponding rate of investment if the Fed decreases the discount rate?
A. The equilibrium interest rate and the equilibrium rate of investment should both decrease. B. The equilibrium interest rate and the equilibrium rate of investment should both increase. C. The equilibrium interest rate should decrease, and the equilibrium rate of investment should increase. D. The equilibrium interest rate should increase, and the equilibrium rate of investment should decrease.