Compared to the situation in which it sets a single price, a monopoly that price discriminates ________ its economic profit and ________ its output
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change
A
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Using fiscal policy to stabilize the economy is difficult because
A. there are time lags involved in the use of fiscal policy. B. the effects of policy changes are known with certainty. C. the size of the government debt doesn't matter. D. potential income is known.
The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United States
A) first B) second C) third D) fourth
Economics is primarily the study of
a. how to make money in the stock market. b. how to operate a business successfully. c. the allocation of scarce resources in an effort to satisfy wants that are virtually unlimited. d. the methods business firms use to reduce their costs of production.
Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PRwhere M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P , then, when the price of the good is $40,
A. there is equilibrium in the market. B. there is a surplus of 180 units of the good. C. there is a shortage of 180 units of the good. D. there is a shortage of 80 units of the good.