Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 10 - QA, and the inverse demand curve for group B is PB = 18 - QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 2, and the monopolist has no fixed costs. If the monopoly uses
uniform pricing, the deadweight loss is 36. If the monopolist is able to practice group price discrimination, the deadweight loss is
A) 30.
B) 32.
C) 34.
D) 36.
B
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If Tom purchases and consumes an entire Pizza, which of the following is likely to be true?
a. The total utility of the first two pieces will be positive and the marginal utility of the second piece will be negative. b. The marginal utility of the second piece will be positive and the total utility of the first two pieces will be negative. c. The total utility of the first two pieces will be positive and the marginal utility of the second piece will be less than the marginal utility of the first piece. d. The marginal utility of the second piece will be positive and the total utility of the first two pieces will be less than the marginal utility of the first piece.
When restrictions alter the pattern of international trade, the _____ benefit and the _____ suffer(s)
a. domestic consumers; domestic producers b. domestic consumers; government c. domestic producers; domestic consumers d. foreign producers; domestic producers e. foreign producers; domestic consumers
________________ said, "Property is theft!"
Fill in the blank(s) with the appropriate word(s).
Assume that corn and cloth are each produced using both land and labor in a country. Corn is relatively land-intensive. If the country experiences an increase in its endowment of labor, product prices remaining unchanged, the Rybczynski theorem predicts that the production of corn will decline.
Answer the following statement true (T) or false (F)