87. Humpty Dumpty wants you to refer to Table 15-4 which shows the demund curve for repair workers facing monopolist. Consider that the monopolist has fixed costs of S1000 and has a constant marginal cost of $2 per unit. If the monopolist were able to perfectly price discriminate, how many units would it sell to Humpty Dumpty? 2 400 b. 500 C. 700 d. 900 88. Bill Gates and Nelson Rockefeller are interested in learning which of the following market foroes can eliminate the inefficiency inherent in monopoly pricing? a arbitrage b. cost-plus pricing C. price discrimination d. regulations that force monopolics to reduce their levels of output 89. Ermest Hemingway wants to know why authors are allowed to be monopolists in the sale of their books? a in order to cncourage authors to write more and better books b. in order to correct for the negative externalities that the Internet and television impose C in order to satisfy literary advocacy groups that exercise their lobbying power d in order to promote a society in which people think for themselves and leam from whichever books they please 90. Martha Stewart and Maric Kondo want to leurn which of the following is perfectly price-discrimimating monopolist able to do? a maximire profit, and produce a socially optimai level of output b maximize profin, but not produce a socially optimal level of output E produce a socially optimal level of output. but not maximize profit d produce a socially optimal level of outpur, and minimize the total cost 91. Placido Domingo is taking a break from performing and is learning cconomics. If fims in a monopolistically competitive market are incurring cconomic losses, which of the following soenarios would best retlect the change facing incumbent firms those who are able to stay in the market) as the market adjusts to its new equilibrium a a dowmward shift in theur marginal-cost curve b. an upward shift in their marpinal-cost curve a decrease in demand dan incrcase in demand 25 130 Price S8 $57 S6 $5 Quantity Demanded 300 400 500 600 700 S3 S2 800 900 1000