A perfectly price discriminating monopolist charges each buyer:
A. more than his or her reservation price.
B. exactly his or her marginal cost.
C. the perfectly competitive equilibrium price.
D. exactly his or her reservation price.
Answer: D
You might also like to view...
Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A) monopolies are interested in economic profits and competitive firms are not. B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry. C) the economies of scale exist only in perfectly competitive industries. D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.
According to the law of comparative advantage, individuals and economies should specialize in producing those goods and services in which they have a comparative advantage
a. True b. False
What is the purpose of a pollution tax?
What will be an ideal response?
If sellers of good cars and sellers of lemons both offer a warranty on their cars, consumers will then be able to tell which cars are the lemons
Indicate whether the statement is true or false