Author Question: Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly? ... (Read 119 times)

jlmhmf · **on:** Jun 29, 2018

Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly?

What will be an ideal response?

Question 2

Suppose a university refunds students 75 of their tuition if they drop out before the third week of class, 50 if they drop out between their third and fifth week, 25 if they drop out between their sixth and eighth week, and 0 after the eighth

week. Flint paid 1,000 tuition, and is in his fourth week of class. What's his sunk cost? A) 0
B) 250
C) 500
D) 750
E) 1,000

jsm54321 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The monopoly practicing perfect price discrimination produces more output. Indeed, a perfectly price discriminating monopoly produces the efficient level of output.

Answer to Question 2

C