The average consumer at a firm with market power has an inverse demand function of P = 10 ? Q. The firm's cost function is C = 2Q. If the firm engages in two-part pricing, what is the optimal fixed fee to charge each consumer?
A. $64
B. $2
C. $32
D. None of the answers are correct.
Answer: C
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Starting at point B in the diagram below, identify which combinations of points illustrate technological change. Give a brief explanation to support your answer
What will be an ideal response?
Suppose the only professional hockey team within 500 miles is the Salt Lake City Slappers team. If the State of Utah imposes a profits tax on sports teams, the Slappers will
a. raise ticket prices b. lower ticket prices to boost sales c. maintain ticket prices and suffer a loss in profits d. expand the number of home hockey games e. reduce the number of home hockey games
The band Coldplay's funding of 10,000 mango trees in India to help sop up emissions related to the release of their CD, A Rush of Blood to the Head, is an example of fixed-production technology
a. True b. False
The monopolist faces:
a. a perfectly inelastic demand curve. b. a perfectly elastic demand curve. c. the entire market demand curve. d. all of these.