Refer to Figure 16-5. Consider the following two pricing strategies:
a. a fixed fee and a per-unit price equal to the monopoly price
b. a fixed fee and a per-unit price equal to the competitive price
The firm represented in the diagram earns a higher profit under strategy ________ and deadweight loss is eliminated under ________.
A) a; b B) b; b C) a; neither strategy D) b; neither strategy
B
You might also like to view...
On January 1, 2015, United Delivery had trucks valued at $1.3 million. During 2015, United Delivery purchased new trucks valued at $500,000. If the value of the trucks on December 31, 2015 was $1
5 million, what is the amount of its net investment and its depreciation during 2015?
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a seventh employee adds:
A. 255 hats to total production.
B. 25 hats to total production.
C. 20 hats to total production.
D. 275 hats to total production.
The model of aggregate demand and aggregate supply can NOT be used to:
A. discuss the pros and cons of income tax cuts. B. evaluate a tax cut's effect on short run economic fluctuations. C. assess a tax cut's effect on longer run issues such as the national debt. D. to discuss income distribution.
A less developed economy has greater income inequality the
a. less the economy is dependent upon agriculture b. smaller the middle class c. more the economy is dependent upon manufacturing d. less diverse the level of manufacturing activity e. greater the level of education in the country