Which of the following statements is true?
A) Although consumers reap some consumer surplus under a single-price monopoly, society is better off with optimal two-part tariff pricing.
B) Of the three pricing schedules, single-price monopoly, an optimal two-part tariff, and perfect price discrimination, profit is highest under single-price monopoly pricing.
C) Consumer surplus under perfect price discrimination is greater than under single-price monopoly pricing.
D) Consumer surplus under an optimal two-part tariff is greater than that under single-price monopoly pricing.
A
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Which of the following is a violation of the antitrust laws?
a. A firm discussing/fixing price with its competitors b. Making arrangements to stay out each other's markets c. Merging with the competitor to eliminate competition d. All of the above are violations
When a product's price increases from $9 to $11, the quantity demanded decreases from 1200 to 800 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5
b. 2.0. c. 0.25. d. 4.0.
If the Federal Open Market Committee decides to decrease the money supply, it will
a. sell government bonds. b. purchase corporate bonds. c. purchase government bonds. d. reduce interest rates.
Suppose your coffee shop earns $250,000 in total revenues per month with explicit costs of $150,000 and opportunity costs of $100,000. Your economic profit is
A. $120,000. B. zero. C. $50,000. D. $160,000.