Multiple Choice
A book vendor can produce a book at a constant MC equal to zero, and its potential buyers have the following reservation prices: $55, $50, $45, $40, $35, $30, $25, $20, $15, $10, $5. What are the unrealized gains from trade if the monopolistic vendor chooses p = $25?
A) $65
B) $45
C) $155
D) $50
Correct Answer:
Verified
Correct Answer:
Verified
Q28: A monopolist:<br>A)earns a profit only in the
Q29: The fundamental difference between a perfectly competitive
Q30: Natural monopolies are:<br>A)characterized by a downward- sloping
Q31: A monopoly faces the following demand curve
Q32: Two goods are close substitutes if:<br>A)one good
Q34: Consider a monopoly with inverse demand function
Q35: If the market demand curve has an
Q36: A monopolist has set the level of
Q37: A monopolist has no incentive to minimize
Q38: Suppose a monopoly has strictly positive marginal