What condition must exist for a monopolist to effectively price discriminate?
A) The monopolist must face consumers with identical willingness to pay.
B) The monopolist must produce a good or service that can be resold.
C) The monopolist must produce a good that cannot be resold.
D) The monopolist must charge the highest price possible.
Ques. 2A sales tax on sellers of a good shifts the supply curve leftward because the tax is like a cost of production.
Indicate whether the statement is true or false
Ques. 3The a firm's short-run cost curves shifts when there is a change in
A) technology
B) the prices of factors of production
C) the quantity of outputs
D) Both answers A and B are correct.
Ques. 4In the above figure, to achieve the efficient amount of paper production, the government could impose a tax of
A) 2 per ton.
B) 8 per ton.
C) 26 per ton.
D) zero, because the efficient amount is produced with no government intervention.
Ques. 5Why would a profit maximizing monopolist in a contestable market set its price at a level below that which maximizes short run profits?
What will be an ideal response?
Quick Reply
