In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high-end customers like 5-star hotels a much higher price than it charges local pubs. This discrimination is possible only if:
a. price discrimination is legal in Talisman.
b. we assume Best Drinks can prevent pub owners from buying liquor and selling it to 5-star hotels.
c. consumers in Talisman have similar price elasticities of demand for liquor.
d. we assume Best Drinks is a natural monopoly.
B
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The New Deal
A. may be summarized by these words: relief, recovery, and reform. B. introduced Medicare and Medicaid. C. succeeded in quickly extending the Great Depression. D. reduced the economic role of the federal government.
Perfect price discrimination will lead a firm to produce up to the point where price equals marginal cost, the efficient level of output
Indicate whether the statement is true or false
Which of the following is TRUE?
A) MPC - MPS = 1 B) MPC + MPS = 1 C) MPC * MPS = 1 D) MPC / MPS = 1
Economists hold many positions advising the president and Congress including
a. being a member of the Council of Economic Advisers. b. helping to enforce antitrust laws at the Department of Justice. c. conducting research at the Congressional Budget Office. d. All of these are possible positions that economists hold.