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 93 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
YES! Correct, THANKS for helping me on my review

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Step 2 of gene cloning: The actions of a restriction enzyme and DNA ligase to produce a recombinant Step 2 of gene cloning: The actions of a restriction enzyme and DNA ligase to produce a recombinant
A horizontally opposed engine design helps to lower the vehicle’s center of gravity. A horizontally opposed engine design helps to lower the vehicle’s center of gravity.
The output on this alternator is printed on a label. The output on this alternator is printed on a label.
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Diagrams a mitotic chromosome, showing how chromatin is condensed to produce it Diagrams a mitotic chromosome, showing how chromatin is condensed to produce it
In 2000, the average charge of tax preparation was 95 . Assuming a normal distribution and a ... In 2000, the average charge of tax preparation was 95 . Assuming a normal distribution and a ...
Video: Types of Burns

For a complete list of videos, visit our video library