Using the table above answer the following question. Assume that the marginal cost of production for this firm is 0 .
If this firm is a monopolist and can only charge a unique price in whole dollar amounts which price will he charge to maximize profits? How much revenue would the firm collect? How would this answer change if this firm were to practice perfect price discrimination?
Question 2
Refer to Figure 2-6. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A) 6 thousand hammers B) 30 thousand wrenches
C) 23 thousand hammers D) 8 thousand wrenches
