Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, using the profit maximization rule, a monopolist that is able to practice price discrimination will charge
A. Different prices to different customers.
B. A price of $500.
C. A price of $450.
D. A price of $400.
Answer: A
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A) open outcry English auction B) open outcry Dutch auction C) sealed-bid first-price auction D) sealed-bid second-price auction
Why did the interest rate volatility of the 1970s spur financial innovation?
What will be an ideal response?
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, consumer surplus will be
A) a. B) a + b + f. C) a + b + c. D) a + b + c + f + g.
Why is private ownership an important source of economic prosperity?
A) It eliminates the opportunity cost of using a resource. B) It allows owners to do anything they want with their property. C) It makes it possible for owners to ignore the desires of others without having to bear the cost. D) It provides owners with a strong incentive to develop and use assets in ways that others value highly.