Because the monopolist doesn't pay attention to the willingness to pay of inframarginal consumers:
A. there can sometimes be a difference between what level of product quality is profitable for the monopolist and what level of product quality maximizes aggregate surplus.
B. the monopolist will choose the optimal level of product quality.
C. the quantity chosen by the monopolist will sometimes maximize aggregate surplus.
D. there can never be a difference between the marginal cost of higher product quality and the marginal value to consumers of higher product quality.
A. there can sometimes be a difference between what level of product quality is profitable for the monopolist and what level of product quality maximizes aggregate surplus.
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What are the net exports using the table shown? In billions of dollarsConsumption3,600Investment800Transfer payments750Government Purchases1,000Exports650Imports450Net foreign factor income?30
A. 650 B. 170 C. 200 D. 450
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
There have been __________ recessions since World War II that have lasted over one year.
A. one B. two C. three D. four
You work as a forecaster for the major producer of digital cameras. You know that there is a strong positive relationship between the demand for digital cameras and the birth of a first child. A report has just been issued predicting that the birthrate is expected to decrease steadily over the next 10 years. You should recommend which of the following courses of action to the firm?
A. Suggest that the firm increase its advertising to avert a substantial decrease in demand for digital cameras. B. Suggest that decreasing investment in new capital to produce digital cameras occur only after it can be verified that the birthrate has decreased. C. Start to decrease investment now so that when the birthrate decreases and the demand for digital cameras decreases, the firm will not have excess inventories due to the decrease in demand. D. Don't change the amount of investment made, but lower the price of digital cameras in response to the expected decrease in the demand.