Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: sam.t96 on Jun 30, 2018
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A price-discriminating monopolist will tend to charge a lower price to students if it believes that students:
a. have a lower willingness to pay than other demanders.
b. have a greater willingness to pay than other demanders.
c. have very elastic demand curves.
d. have nearly vertical demand curves.
Question 2
State two characteristics of the long-run equilibrium under perfect competition.
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Answer to Question 1
a
Answer to Question 2
In a long-run equilibrium (1) there are no firms outside the market that can earn an economic profit by entering it, and (2) no firms that are taking losses remain in the market.