Author Question: Suppose a monopolist cannot price discriminate. To maximize profit, it will a. always produce in ... (Read 81 times)

jilianpiloj · **on:** Jun 30, 2018

Suppose a monopolist cannot price discriminate. To maximize profit, it will
a. always produce in the inelastic range of its demand curve
b. never produce in the elastic range of its demand curve
c. never produce in the inelastic range of its demand curve
d. never produce in the elastic range of its marginal cost curve
e. produce in the elastic range of the marginal revenue curve

Question 2

Compared to the profit-maximizing outcome, average cost pricing in natural monopoly leads to
a. all of the following
b. a higher price
c. decreased consumer surplus
d. the elimination of economic profit
e. less output