When a monopolist is able to price-discriminate:
a. its profits tend to increase and its output tends to fall.
b. both its profits and output tend to increase
c. both its profits and output tend to decrease.
d. its profits tend to fall and its output tends to increase.
b
You might also like to view...
If the population of a country increases, while GDP remaining constant, then ________
A) income per capita will remain unchanged B) trade deficit will decrease C) gross national product will increase D) income per capita will decrease
A relatively large increase in the cost of electricity would likely
A. result in a large increase in the use of gas for home use immediately. B. cause an immediate large decline in the use of electricity. C. increase the use of gas and decrease the use of electricity after a time lapse. D. cause an equal reduction in the use of electricity immediately.
Refer to Figure 12-9. At price P2, the firm would
A) lose an amount more than fixed cost. B) break even. C) lose an amount less than fixed cost. D) lose an amount equal to its fixed cost.
A consumer spends his income on food and rent. The government places a $1 tax on food. To restore the pre-tax consumption level of food the rebate paid to consumers will be smallest when
A) the own price elasticity of demand for food is 2, and the income elasticity of demand for food is 5. B) the own price elasticity of demand for food is 5, and the income elasticity of demand for food is 5. C) the own price elasticity of demand for food is 2, and the income elasticity of demand for food is 10. D) the own price elasticity of demand for food is 5, and the income elasticity of demand for food is 10.