A firm acts as a monopolist in two different markets. When free to do so, it chooses different prices in the two markets. If this firm were forced to choose one price to charge in both markets, it wouldO a. make conumers worse off in both marketO b. make consumers better off in both markets.O c. make consumers better off in one market, and worse off in the other.O d. have an uncertain impact on consumers. We do not have enough information to chose any of the other answers.

Monopoly firm follows the price discrimination strategy to increase profit. Prices are set according…

acts as a monopolist in two different markets. When free to do so, it chooses different prices in the two markets. If this firm were forced to choose one price to charge in both markets, it would make conumers worse off in both market make consumers better off in both markets. make consumers better off in one market, and worse off in the other. have an uncertain impact on consumers. We do not have enough information to chose any of the other answers.

acts as a monopolist in two different markets. When free to do so, it chooses different prices in the two markets. If this firm were forced to choose one price to charge in both markets, it would make conumers worse off in both market make consumers better off in both markets. make consumers better off in one market, and worse off in the other. have an uncertain impact on consumers. We do not have enough information to chose any of the other answers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

2nd degree price discrimination is efficient because the monopolist manages to successfully separate the different types of consumers. True or False?
A monopolist is selling sneakers to students and non-students. The marginal cost of an extra pair of sneakers is 7$. Student demand is Q=189-P and no student demand is Q=400-2P. Right now they act as a single-price monopolist for the entire market. If they decide to do group price discrimination, what will be the CHANGE in prices for students?
True/False Usually monopoly is inefficient for the consumer.
A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P2. Calculate the profit maximising output produced and price charged in each country by the price-discriminating monopolist and comment in which country the price charged is higher and by how much.
a monopolist knows that there are 2 types of consumers, "high demand" and "low demand" types. Inverse demand for low is p=150-qL and p=200-qH . 70% of consumers are the L type. MC =0. a) find the optinal price if the firm can only set one price. b) explain how a firm can set a fee for purchasing any amount and why it is better than single price strategy.
A firm facing a downward sloping demand curve is producing a level of output at which price is $16, marginal revenue is $12, and average total cost, which is at its minimum value, is $8. In order to maximize profit, the firm should decrease price. A monopolist is producing a level of output at which price is $138, marginal revenue is $72, average total cost is $72, and marginal cost is $103. In order to maximize profit, the firm should output. A firm with market power is producing a level of output at which price is $19, marginal revenue is $12, average variable cost is $14, and marginal cost is $26. In order to maximize profit, the firm should price.
A discriminating monopolist is able to charge different prices in two different markets. Assume that the quantity demanded at a given price is always greater in market 1 than the quantity demanded in market 2. Therefore, we know that the price in market 1 will be greater than the price in market 2. True or False?
A monopolist faces two separate markets and can price discriminate accordingly. The demand in the first market is Q1 = 345p, and the inverse demand in the second market is P = 439 – 4Q2. The total cost of production is c(Q) = 1.5(Q1 + Q2). Answer the following: If rounding is needed, write your answers to 3 decimal places. a) - Find the profit maximising price for the first market. b)i Find the profit maximising price for the second market.
Economics A market comprises two consumers groups: high- demand types and low-demand types. Assume there are 100 consumers of each type. The high types have demand QH = 14 – Pand low types have demand QL = 12 – P. Assume the marginal (and average) cost is 4 and there are no fixed costs. If the monopolist firm is able to distinguish between the two consumer types and using block pricing to extract maximum profit, how much profit will they earn in total? Select one: а. 9000 b. 6800 С. 8200 d. 7200
A monopolist has estimated that IF he enters an industry, he will have fixed costs of $600 and variable costs of Q ^ 2 The price is 2Q - 120 . Will he enter the industry?
we had two buyer types for pharmaceuticals. One with inverse demand P = 8 – 0.25Q, and one with inverse demand P = 4 – 0.1Q. Marginal cost of the monopolist was constant and equal to 2. If the monopolist cannot price discriminate (so they charge a single price to everyone), show whether their profits are higher serving only the high demand market, or serving both markets. Show whether consumer surplus is higher or lower with or without price discrimination at the monopolist’s optimal solution in either case.
First degree price discrimination is inefficient because the monopolist will extract the entire consumer surplus. True or False?