Question
A monopolist is using third-degree price discrimination. Which of the following statements are true? I. If a monopolist can use either the first-degree price discrimination
A monopolist is using third-degree price discrimination. Which of the following statements are true? I. If a monopolist can use either the first-degree price discrimination or the third-degree price discrimination, then using third-degree price discrimination results in strictly higher profit than using first-degree price discrimination. II. A monopolist using third-degree price discrimination needs to know the willingness to pay of different groups of consumers III. Student discounts are an example of third-degree price discrimination
Group of answer choices
Which of the statements about the short-run are true? I. Average fixed cost is always declining II. Because of diminishing marginal product, average variable cost is eventually upward-sloping III. When marginal cost is below the average total cost, the average total cost is falling as quantity increases
Group of answer choices
only I and II are true
None of the other answers is correct
I, II, and III are true
only I and III are true
only II and III are true
Consider a monopolist facing a demand curve of P = 100 20q, where P is market price and q is quantity. The monopolist has a constant marginal cost curve of $50 per unit. What is the monopolists marginal revenue curve (MR)?
Group of answer choices
MR = 100 40q
MR = 100 20q
None of the other answers is correct
MR =200 20q
MR = 50
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