25. Which of the following statements is incorrect? A) Purely monopolistic sellers earn only normal profits in the long run. 3 ) The pure monopolist will stop producing at that point on the demand curve where elasticity reaches zero. C) The pure monopolist reduces losses by producing the output at which the total revenue is greater than total fixed costs. D) In seeking the profit-maximizing output the pure monopolist underallocates resources to its production. 26. If a movie theater price discriminates, we can expect: A) profits to increase and total revenue to fall. B) both profits and tickets sold would decrease. C) their demand curve would lie below the marginal revenue curve. D) profits and tickets sold would increase. Using Figure 4, consider the potential weekly profits for the following competing businesses: Figure 4 UBER High LOW LYFT High $2000. $2,000 $900, $2,500 Low $2,500, $950 $1.000, $1,000 27. If UBER followed it's dominant strategy and knew LYFT'S information, UBER'S profit would be: A) $2000 D) $900 B) $1000 Beal E) No Dominant Strategy C) $950 28. If the firms choose to collude, what is the outcome? A) LYFT $2,000, UBER $2,000 D) LYFT $2,000, UBER $2,500 B) None of the choices E) LYFT $2,500, UBER $$2,500 C) LYFT $2,500, UBER $2,000 29. If LYFT chose to price Low, UBER'S best choice is to: A) $950 C) Price High B) Price Low D) None of the choices