30. Refer to Exhibit 24-1. If the product is produced under single-price monopol
ID: 1202453 • Letter: 3
Question
30. Refer to Exhibit 24-1. If the product is produced under single-price monopoly, what quantity will be produced and what price will be charged in order to maximize profit?
a.
Q2 units at P1
b.
Q1 units at P1
c.
Q1 units at P2
d.
Q2 units at P2
31. Refer to Exhibit 24-1. If the product is produced under single-price monopoly, what do profits equal at the profit maximizing level of output?
a.
area 0P1BQ1
b.
area BCA
c.
area P1P2CB
d.
area P2CAP1
e.
none of the above
32. Refer to Exhibit 24-1 The deadweight loss of the profit-maximizing monopoly is identified by what area?
a.
area Q1BAQ2
b.
area BCA
c.
area P1P2CB
d.
area 0P1BQ1
e.
none of the above
33. Suppose the local pharmacy charges lower prices to senior citizens than it charges to younger customers. The pharmacy is practicing
a.
perfect price discrimination.
b.
second-degree price discrimination.
c.
arbitrage.
d.
third-degree price discrimination.
e.
non-cost discrimination.
a.
Q2 units at P1
b.
Q1 units at P1
c.
Q1 units at P2
d.
Q2 units at P2
Explanation / Answer
30. Q1 units at P2
31. area P1P2CB
32. area BCA
33. third-degree price discrimination.
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