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Author Question: For a monopolist that does not price discriminate, economic profit is maximized in the short run at ... (Read 94 times)

rosent76

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on: Jun 30, 2018
For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of 140 . Marginal revenue at that output level is
 a. equal to 140
  b. greater than 140
  c. less than 140
  d. less than marginal cost
  e. greater than average revenue

Question 2

Which of the following is true when regulators require a natural monopolist to set price equal to marginal cost?
 a. This policy results in a less than socially optimal allocation of resources.
  b. The marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit.
  c. The monopolist will face recurring losses unless a subsidy is provided.
  d. The monopolist will earn a normal profit.
  e. The monopolist will earn more than a fair return.


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heyhey123

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


rosent76

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Reply #2 on: Jun 30, 2018
Thank you :)


heyhey123

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Reply #3 on: Jun 30, 2018
Happy to help you


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