To practice price discrimination, a firm must meet each of the conditions listed below, except Multiple Choice the firm must have some degree of monopoly power the firm must be abie to separate its customers into two or more groups with diferent demand elasticities for the product the fem produces purchasers of the firm's product cannot resel it the firm's production schedule must entail economies of scale.

To practice price discrimination, a firm must meet each of the conditions listed below, except Multiple Choice the firm must have some degree of monopoly power the firm must be abie to separate its customers into two or more groups with diferent demand elasticities for the product the fem produces purchasers of the firm's product cannot resel it the firm's production schedule must entail economies of scale.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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31) If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L-0.5, then the labor demand for the monopoly is A) 0.8PL-0.5. B) 0.4PL-0.5. C) 0.8PL-2. D) 0.4PL-2. 32) Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L-0.5, then the labor demand for a Cournot firm is A) PL-0.5. B) 0.6PL-0.5. C) 0.2PL-2. D) PL-2. 33) If the labor market is competitive, a monopoly output market will result in A) a lower wage than that of a competitive output market. B) a higher wage than that of a competitive output market. C) less labor hired than in a competitive output market. D) more labor hired than in a competitive output market. For the following, please answer "True" or "False" and explain why. 34) If the price of a competitive firm's output increases, the firm responds in the short run by demanding more labor. 35) If the…
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