If a monopolist is practicing perfect price discrimination, then the following equation is true:
A) MC = 1/2 MR at the profit-maximizing level of output.
B) MR = 1/2 P for any unit.
C) MR = P for all units.
D) P = AVC at the profit-maximizing level of output.
E) AR = ATC at the profit-maximizing level of output.
Ans: C) MR = P for all units.
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An rational, optimizing, self interested consumer would consume up to the point where
a. the consumer surplus from the last unit is positive b. the consumer surplus from the last unit is negative c. the consumer surplus from the last unit is zero d. none of the above
Which of the following is true of taxes?
What will be an ideal response?
All of the following are reasons why AVC is always less than ATC in the short run EXCEPT:
If the desired reserve-deposit ratio is 0.25 and the banking system receives an additional $10 million in reserves, bank deposits will increase by:
A. $40 million. B. $4 million. C. $10 million. D. $250 million.