Question 10.10. The nondiscriminating pure monopolist must decrease price on all units of a product sold in order to sell more units. This explains why there are barriers to entry in pure monopoly. a monopoly has a perfectly elastic demand curve. marginal revenue is less than average revenue. total revenues are greater than total costs at the profit-maximizing level of output. Question 11.11. Which case below best represents a case of price discrimination? An insurance company offers discounts to safe drivers. A major airline sells tickets to senior citizens at lower prices than to other passengers. A professional baseball team pays two players with identical batting averages different salaries. A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants. Question 12.12. In which industry is monopolistic competition most likely to be found? Utilities Agriculture Retail trade Mining
Question 10.10. The nondiscriminating pure monopolist must decrease
there are barriers to entry in pure monopoly.
a monopoly has a perfectly
marginal revenue is less than average revenue.
total revenues are greater than total costs at the profit-maximizing level of output.
Question 11.11. Which case below best represents a case of
An insurance company offers discounts to safe drivers.
A major airline sells tickets to senior citizens at lower prices than to other passengers.
A professional baseball team pays two players with identical batting averages different salaries.
A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants.
Question 12.12. In which industry is
Utilities
Agriculture
Retail trade
Mining
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