Tying products can be a profitable strategy for facilitating price discrimination only when:
a. the demands for the goods are unrelated.
b. the supply of one of the tied products is low.
c. the demands for the goods are related.
d. the market for one of the goods is competitive.
Question 2
If at the profit-maximizing level of output, a monopolist's average-total-cost curve lies above its demand curve, then:
a. the firm should shut down in the short run.
b. the firm would earn economic losses.
c. the firm would earn economic profits.
d. the firm should increase its output.
e. the firm should decrease its output.
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