If the monopolist facing the demand curve P = 10 - Q is a perfectly discriminating monopolist and marginal cost is constant at $4, how much will the firm sell if it profit maximizes? 
A. 6
B. 4
C. 5
D. 10
Answer: A
You might also like to view...
Bruce engages in an activity that diminishes the well-being of Shawna. Bruce pays no compensation to Shawna for her loss in well-being. What specific term do economists use to describe this situation?
A nonexcludable public good is
A) rivalrous in consumption and nonexcludable B) nonrivalrous in consumption and excludable C) nonrivalrous in consumption and nonexcludable D) rivalrous in consumption and excludable E) none of the above
Assuming your local cash price is quoted above the CBOT futures price, an increase in transportation costs in your area would be expected to have what effect on the basis:
A. Widen the basis. B. Strengthen the basis. C. No effect on the basis. D. Not enough information to tell.
In 2001 a combination of tax cuts and increased defense spending did not have the same inflationary effect as the similar policy in the 1960s. Explain the difference.
What will be an ideal response?