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 87 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
:D TYSM

mcarey591

  • Member
  • Posts: 365
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Plant apical meristems and the primary tissues they produce. Plant apical meristems and the primary tissues they produce.
Activating a gene to produce “marathon mice.” Activating a gene to produce “marathon mice.”
Muscles of the right lower extremity Muscles of the right lower extremity
Inferring Productivity from Data on Output and Factor Accumulation Inferring Productivity from Data on Output and Factor Accumulation
Possible Sources of Differences in Output per Worker Possible Sources of Differences in Output per Worker
Factors that Increase Cardiac Output Factors that Increase Cardiac Output
Video: Genetic terms Animation

For a complete list of videos, visit our video library