Suppose that a price-discriminating monopolist divides its market into two segments. If the firm sells its product for a price of $42 in the market segment where demand is relatively less elastic, the price in the market segment whose customers' demand is more elastic will be
a. $42
b. greater than $42
c. less than $42
d. less than marginal revenue in that market segment
e. equal to marginal revenue in that market segment
C
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Unlike previous and future wars, the United States' federal government did not need to impose an income tax to finance the Civil War (1861–1865)
Indicate whether the statement is true or false
Which of the following pairs of goods is the best example of substitute goods?
a. Borden's milk and Nabisco cookies b. Goodyear tires and Ford automobiles c. Exxon gasoline and Ford automobiles d. McDonald's Big Mac and Wendy's grilled chicken sandwich e. Dell computers and Microsoft software
Exhibit 17-5 Short-run and long-run Phillips curve
Suppose the government shown in Exhibit 17-5 uses contractionary monetary policy to reduce inflation from 9 to 6 percent. If people have adaptive expectations, then:
A. the economy will remain stuck at point E1. B. the natural rate will permanently increase to 8 percent. C. unemployment will rise to 8 percent in the short run. D. unemployment will remain at 6 percent as the inflation rate falls.
It is common to see convenience stores open 24 hours a day even though many times late at night or in the early hours of the morning there are very few customers. What can explain this seemingly odd behavior?
What will be an ideal response?