Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the per-unit price?
A) $28 B) $24 C) $12 D) $8
B
You might also like to view...
A profit maximizing monopoly's price is
A) not consistently related to price that would prevail if the market was perfectly competitive. B) greater than the price that would prevail if the industry was perfectly competitive. C) less than the price that would prevail if the industry was perfectly competitive. D) the same as the price that would prevail if the industry was perfectly competitive.
The figure below shows the market for shoes in a small importing country. Dd and Sd are the domestic demand and supply curves of shoes, respectively.
Following the imposition of a tariff, the domestic producer surplus ________ by the area
A. increases; (S1 - S0). B. increases; (a + b). C. increases; a. D. decreases; a.
Efforts by corporate lobbyists to obtain a license that would give a firm a monopoly over the making of a product would be an example of:
A. price discrimination. B. rent-seeking. C. network effects. D. X-efficiency.
One reason that the aggregate demand curve slopes downward is because
A. higher price levels increase real wealth and consumption. B. higher price levels increase investment. C. higher price levels reduce net exports. D. higher price levels reduce interest rates.