Ramsey pricing avoids cross subsidy
Indicate whether the statement is true or false
F It is possible to have Ramsey prices that cross subsidize.
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Which of the following is a key difference between firms in a perfectly competitive industry and firms in a monopolistically competitive industry?
a) A monopolistically competitive firm does not face entry from other firms. b) A monopolistically competitive firm does not have the exact same product as other firms. c) A monopolistically competitive firm does not choose a level of output where marginal cost is equal to marginal revenue. d) A monopolistically competitive industry does not have a large number of sellers.
When the charge against ALCOA for exercising monopoly control of the aluminum market was brought to court, ALCOA's market share, excluding scrap aluminum, was
a. 100 percent b. 90 percent c. 80 percent d. 65 percent e. 33 percent
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
When this monopolist maximizes its profit, consumer surplus equals the area:
A. ABJ. B. ACKJ. C. AELJ. D. ACN.
A firm has a total cost function of C(Q) = 75 + 25Q1/2. The firm experiences:
A. diseconomies of scale. B. economies of scale. C. constant returns to scale. D. All of the statements associated with this question are correct.