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Author Question: In the small country of Talisman, the liquor industry is monopolized by a single producer Best ... (Read 87 times)

storky111

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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.


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cat123

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

d


storky111

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Reply 2 on: Jun 30, 2018
Excellent

FergA

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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