Suppose the monopolist only sold the goods separately. What prices will the monopolist charge for Good 2 to maximize revenues for good 1?
a. $4,500
b. $5,000
c. $1,500
d. $1,000
d
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Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. This will
A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along a stationary aggregate demand curve. D) move the economy down along a stationary aggregate demand curve.
The term structure of interest rates describes the relationship between the rate of interest charged and the
a. length of time until repayment of the loan b. amount of the loan c. riskiness of the borrower d. identity of the borrower e. age of the lender
Suppose that 2012 is the base year and the price deflater in 2016 is 104.5. Considering this, how are the prices in 2016 different from the price in 2012?
a. The 2016 prices are about 4.5 percent lower than the 2012 prices. b. The 2016 prices are about 104.5 percent lower than the 2012 prices. c. The 2016 prices are about 4.5 percent higher than the 2012 prices. d. The 2016 prices are about 104.5 percent higher than the 2012 prices.
The existence of profit in a perfectly competitive industry means that:
a. new producers will seek to enter the industry. b. consumers will switch to substitute goods. c. each producer is charging a different price. d. the current price exceeds marginal cost.