A perfectly price-discriminating monopolist:
A. captures some or all of the consumer surplus.
B. shifts the demand curve for its product to the right by producing where MC = MR.
C. will cause a greater welfare loss than will a monopolist that is not price-discriminating.
D. increases both consumer surplus and producer surplus.
Answer: A
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Answer the following statements true (T) or false (F)
1. A positive economic statement is always true. 2. Positive economics deals with “what is” as opposed to “what ought to be.” 3. The largest part of U.S. national income takes the form of profits. 4. Consumption is the ultimate end of economic activity.
When is a game dominance solvable?
Happyland is a country devoted to consumption. The inhabitants spend all of their income on pleasurable things and virtually none on capital investment, human or otherwise. Seriousland is frugal, spending very little on consumption and a great deal on human and physical capital. Ten years from now, which country would you prefer to inhabit?
Refer to the diagram, in which Qf is the full-employment output. The shift of the aggregate demand curve from AD3 to AD2 is consistent with
A. an expansionary fiscal policy. B. a major recession. C. a contractionary fiscal policy. D. demand-pull inflation.