What price does a monopoly charge when it perfectly implements a two-part tariff?
a. The simple monopoly price.
b. The competitive price.
c. A price higher than that charged by a simple monopoly.
d. A price between the monopoly and competitive prices.
b. The competitive price.
You might also like to view...
If all of the returns to a resource are in the form of economic rent,
a. the demand curve for that resource must be horizontal b. the demand curve for that resource must be vertical c. the supply curve of that resource must be horizontal d. the supply curve of that resource must be vertical e. the demand curve for that resource must be perfectly elastic
Which statement is FALSE with respect to the size and role of the U.S. government?
A. Two major crises, the Great Depression and World War II, led to a much greater economic role for the federal government. B. Since 1945, the role of government at the federal, state, and local level has expanded. C. The economic role of the federal government has steadily expanded ever since the Civil War. D. The seeds of the expansion of the federal government's economic role were sown during the Roosevelt administration from 1933-1945.
Brand name aspirin is chemically identical to store brand aspirin. Yet, consumers often prefer the brand name product to the store brand product. This preference is an example of
A) product differentiation. B) perfect product competition. C) oligopolistic product competition. D) price taking behavior.
The income effect implies that there is a positive relationship between
A) income and the unemployment rate. B) the unemployment rate and the inflation rate. C) aggregate supply and aggregate demand. D) monetary growth and interest rates.