This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the small country of Talisman, the liquor industry is monopolized by a single producer Best ... (Read 65 times)

storky111

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high-end customers like 5-star hotels a much higher price than it charges local pubs. This discrimination is possible only if:
 a. price discrimination is legal in Talisman.
  b. we assume Best Drinks can prevent pub owners from buying liquor and selling it to 5-star hotels.
  c. consumers in Talisman have similar price elasticities of demand for liquor.
  d. we assume Best Drinks is a natural monopoly.

Question 2

If a monopolist is producing at the profit-maximizing level of output, what price will it charge?
 a. The price given by the marginal-revenue curve at that level of output.
  b. The price given by the marginal-cost curve at that level of output.
  c. The price given by the average-cost curve at that level of output.
  d. The price given by the average-revenue curve at that level of output.
  e. The price given by the total revenue curve at that level of output.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cat123

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

d


storky111

  • Member
  • Posts: 561
Reply 2 on: Jun 30, 2018
Gracias!

CAPTAINAMERICA

  • Member
  • Posts: 325
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Comparison of small subunit rRNA gene sequences of vertebrate, invertebrate chordate, and invertebra Comparison of small subunit rRNA gene sequences of vertebrate, invertebrate chordate, and invertebra
Many human diseases are caused by mutations in single genes Many human diseases are caused by mutations in single genes
Small intestine. Small intestine.
Instruct the patient to use an applicator to apply a small amount of stool in the appropriate boxes ... Instruct the patient to use an applicator to apply a small amount of stool in the appropriate boxes ...
The small arrows indicate the air bypassing the throttle plate in the closed throttle position. ... The small arrows indicate the air bypassing the throttle plate in the closed throttle position. ...
Simplify. Write as a single power. Simplify. Write as a single power.
Video: Phases of the ovarian cycle

For a complete list of videos, visit our video library