Author Question: Two groups of consumers have different valuations of the two monopoly products you as a monopolist ... (Read 35 times)

brutforce · **on:** Jun 30, 2018

Two groups of consumers have different valuations of the two monopoly products you as a monopolist have bundled together. If their valuations for the two products are proportional, i.e. Group A's valuation of X is 10 and Y is 15, while Group B's valuation of X is 20 and Y is 30, bundling the products will be more profitable for the monopolist.
Indicate whether the statement is true or false

Question 2

In many cities, the market for cab services is monopolized. This monopoly arises because:
a. of economies of scale.
b. of government restrictions on the entry of new firms.
c. there is a limited space on the streets for taxis.
d. it protects the consumers from unscrupulous drivers.
e. of high fixed costs of entering the business.