Multiple Choice
The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P1.
Figure 12-1 ![The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P<sub>1</sub>. Figure 12-1 -In Figure 12-1,if the monopolist cannot price discriminate it will produce: A) Q<sub>2</sub> and sell at price P<sub>1</sub>. B) Q<sub>2</sub> and sell at price P<sub>2</sub>. C) Q<sub>1</sub> and sell at price P<sub>1</sub>. D) Q<sub>1</sub> and sell at price P<sub>2</sub>.](https://d2lvgg3v3hfg70.cloudfront.net/TB1825/11ea77e2_d741_cf63_91bf_d5c52a3cd000_TB1825_00.jpg)
-In Figure 12-1,if the monopolist cannot price discriminate it will produce:
A) Q2 and sell at price P1.
B) Q2 and sell at price P2.
C) Q1 and sell at price P1.
D) Q1 and sell at price P2.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Identify the correct statement about price discrimination.<br>A)Price
Q9: Which of the following is true of
Q17: The following figure shows the downward sloping
Q18: Derive the first-order conditions for profit maximization
Q21: Consumer surplus is completely transferred to the
Q39: The strategy of charging different prices to
Q45: Which of the following is true of
Q53: With peak-load pricing,a firm charges a different
Q69: Consider a profit-maximizing monopolist whose consumers have
Q79: When a monopolist practices third-degree price discrimination,price