Compared to the monopoly outcome with a single price, imperfect price discrimination (i) sometimes raises total surplus. (ii) sometimes lowers total surplus. (iii) always leads to a lower quantity of output
a. (i) and (ii) only
b. (ii) and (iii) only
c. (i) and (iii) only
d. (i), (ii), and (iii)
a
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Suppose your donut shop earns $20,000 in total revenues per month with explicit costs of $15,000 and opportunity costs of $5,000. Your economic profit is
A) $16,000. B) $12,000. C) $5,000. D) zero.
How would a decrease in the cost of production affect the market for video games?
a. Supply would decrease, leading to an increase in price and a reduction in quantity sold. b. Supply would decrease, leading to a reduction in price and a reduction in quantity sold. c. Supply would increase, leading to an increase in price and an increase in quantity sold. d. Supply would increase, leading to a reduction in price and an increase in quantity sold.
In the context of the global economy, the United States' capacity utilization rate __________________ than it was just a few decades ago.
A. is much more important B. is much less important C. has the same importance
Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million.To Mexico, the payoff to cheating is either:
A. $150 million or $200 million. B. $100 million or $110 million. C. $60 million or $100 million. D. $80 million or $110 million.