A monopolist with the ability to use price discrimination produces more to maximize profit than it would if it could charge only one price.
Answer the following statement true (T) or false (F)
True
A firm that price discriminates, charging different prices to different consumers, will increase its output to the point where price, which is now equal to MR, is equal to MC. This allows firms to increase their revenue as well as their profits.
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Describe and explain the policy irrelevance proposition
What will be an ideal response?
Managers can increase firm profits by:
A) increasing revenue only. B) decreasing costs only. C) increasing revenue and decreasing costs. D) none of the above.
In a public goods context, it is difficult to measure its impact on real income because
A. public goods are generally free to the public. B. they make up a small percentage of total GDP. C. people do not reveal how they value public goods. D. inflation decreases the value of the good.
The Endangered Species Act is an attempt to
A) protect endangered species against greedy loggers, farmers, and business people. B) protect endangered species from the overzealousness of many environmentalists. C) protect species endangered because there are no private property rights on them. D) prevent some people from earning a good living.