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

Author Question: A monopolist will charge a lower price and produce more output than if it was operating in a ... (Read 50 times)

joblessjake

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
A monopolist will charge a lower price and produce more output than if it was operating in a competitive market.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Lori plans to buy a convertible this weekend. Her two favorite cars are the BMW, which would give her 160,000 utils of satisfaction, and the Mitsubishi Eclipse Spyder, which would give her only 124,000 utils of satisfaction. The BMW that she wants sells for 37,220, while the Mitsubishi sells for 28,200 . She can afford either car.
 a. Which car will she buy in order to maximize her utility?
  b. To what price will her second choice have to fall to get her to make her first choice?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joneynes

  • Sr. Member
  • ****
  • Posts: 376
Reply #1 on: Jun 30, 2018
Answer to Question 1

False

Answer to Question 2

a. She will buy the Mitsubishi, because its marginal-utility-to-price ratio, 4.397, is higher than the marginal-utility-price ratio for the BMW (4.03).
b. If the price of the BMW falls to 34,114.17 = 160,000 / 4.397, she will be indifferent between the two. If the price of the BMW falls to 34,114.16, she will buy the BMW.


joblessjake

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
Excellent

6ana001

  • Member
  • Posts: 311
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

The lower respiratory tract The lower respiratory tract
Stand in a doorway and hook your fingertips on both sides about chest level or lower. Stand in a doorway and hook your fingertips on both sides about chest level or lower.
How Much Food Does the World Produce Per Person? How Much Food Does the World Produce Per Person?
Gradient Flow:Upper air moving from areas of higher pressure to areas of lower pressure undergo ... Gradient Flow:Upper air moving from areas of higher pressure to areas of lower pressure undergo ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
The charge for telephone calls T is partly constant and partly varies with the number N of ... The charge for telephone calls T is partly constant and partly varies with the number N of ...
Video: Dissociative Disorders (Part 3)

For a complete list of videos, visit our video library