Which is true of a price discriminating pure monopolist?
A. P > MR for the last unit sold.
B. Profit will be lower than in the nondiscriminating case.
C. Allocative inefficiency will be greater than in the nondiscriminating case.
D. The average price will be higher than in the nondiscriminating case.
Answer: D
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You turn to the bond market page of a newspaper and look under the column headed "Net Chg" and see that it says, "-1/4" this indicates that
A. the closing price for the bond on this particular day was $2.50 lower than on the previous day. B. the closing price for the bond on this particular day is $0.25 lower than on the previous day. C. the yield for the bond has fallen by 0.25% compared to the previous day. D. the yield for the bond has fallen by 0.25% compared to exactly one year ago.
One thing that distinguishes normative economic principles from positive economic principles is that:
A. normative principles tell us how people will behave, and positive principles tell us how people should behave. B. normative principles are pessimistic and positive principles are optimistic. C. normative principles tell us how people should behave, and positive principles tell us how people will behave. D. normative principles reflect social norms, and positive principles reflect universal truths.
Incomes for adults vary widely across race and gender in the United States. These differences could be due to:
A. discrimination. B. choice of occupation. C. education. D. All of these can explain the differences.
The multiple by which the commercial banking system can increase the supply of money on the basis of each dollar of excess reserves is equal to:
A. the reciprocal of the legal reserve ratio. B. the reciprocal of the velocity of money. C. 1 minus the legal reserve ratio. D. marginal propensity to save.