Author Question: Which of the following is true of perfect price discrimination compared to charging a single price? ... (Read 82 times)

ts19998 · **on:** Jun 30, 2018

Which of the following is true of perfect price discrimination compared to charging a single price?
a. Output is greater.
b. Output is the same, but profit is higher.
c. Output is lower, but profit is higher.
d. Output is lower, and profit could be higher or lower.
e. Output is the same, but profit is lower.

Question 2

There are six firms in the cresset industry. The market shares of the four largest firms are 50 percent, 20 percent, 10 percent, and 7 percent. The Herfindahl index is
a. 87
b. 4,149
c. 10,000
d. 3,081
e. impossible to calculate because data for the fifth and sixth firms are not given