Which of the following observations concerning price discrimination is true?
A. It only occurs in monopolies.
B. It is easier for a monopolist than for a firm that is affected by competition.
C. It means that sales to all customers are equally profitable.
D. It is considered as a bad business practice under all circumstance.
Answer: B
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If countries have similar factor endowments and productivities, their trade is likely to be interindustry
Indicate whether the statement is true or false
In the short run, a monopolist will shut down when
a. average total cost is greater than price at all output levels b. average variable cost is greater than average fixed cost at all output levels c. price is greater than average variable cost at all output levels d. average fixed cost is greater than price at all output levels e. average variable cost is greater than price at all output levels
Assume that coffee and tea are substitutes. When the price of coffee increases
A) the supply of tea increases.
B) the demand for tea decreases.
C) the demand for tea increases.
D) the supply of tea decreases.
The demand curve confronting a nondiscriminating pure monopolist is:
A. more elastic than the demand curve confronting a competitive firm. B. derived by vertically summing the individual demand curves competitors. C. the same as the industry's demand curve. D. horizontal.