To maximize profits, a monopolist that engages in price discrimination must allocate output in such ...

To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.
 a. ratio of price to marginal cost
  b. ratio of marginal cost to marginal utility
  c. ratio of price to elasticity
  d. marginal revenue
  e. none of the above

QUESTION 2

Someone who values a lottery at more than the expected value is
 a. a risk lover
  b. risk neutral
  c. risk averse
  d. one who tends to play lots of lotteries

QUESTION 3

If the demand faced by a firm is elastic, selling one less unit of output will:
 a. increase revenue.
  b. decrease revenue.
  c. keep revenues constant.
  d. decrease price.

QUESTION 4

For a monopolist that engages in price discrimination, when the price elasticity in market 1 is less (in absolute value) than in market 2, the optimal price in market 1 will exceed the optimal price in market 2.
 a. true
  b. false

QUESTION 5

Someone who values a lottery at less than the expected value is
 a. a risk lover
  b. risk neutral
  c. risk averse
  d. one who tends to play lots of lotteries