To maximize its profit, a monopoly should choose a price where demand is:
A. elastic.
B. inelastic.
C. unitary elastic.
D. vertical.
Answer: A
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A monopolist can perfectly price discriminate:
A. when it can distinguish consumers with a high versus low willingness to pay. B. when it offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay. C. if it knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit. D. whenever it chooses to as a result of its market power.
Farmers who work for themselves with their own equipment on their own land could earn accounting profits and economic losses at the same time
a. True b. False Indicate whether the statement is true or false
The old-age dependency ratio is found by
A. dividing the number of older people by the number of people in the entire population. B. dividing the number of older people by the number of people of working age. C. multiplying the number of older people by the percentage in that group who have no retirement savings. D. dividing the number of people of working age by the number of retirees.
Refer to the above graphs. A short-run equilibrium that would produce losses for a monopolistically competitive firm would be represented by graph:
A. A. B. B. C. C. D. D.