1. Which of the following statements is TRUE? A. To maximize profits, monopolist
ID: 1227914 • Letter: 1
Question
1. Which of the following statements is TRUE? A. To maximize profits, monopolists with always set a higher price in markets with more inelastic demand curves. B. Monopolists typically prefer not to segment markets C. Even if demand curves are identical, it is still typically profit maximizing for monopolists to charge different prices in different markets2. On Black Fridays, most retail outlets have major store wide sales. Yet, as one of the busiest shopping days in the US, one would expect prices to increase, not decrease. Price discrimination explains the answer to this question because price:
A. Sensitive shoppers are more likely to want to stay away from Black Friday B.insensitive shoppers will stay away to avoid the crowds C. Sensitive shoppers are more likely to notice tying and bundling tricks
3. In the case of a perfectly price-discriminating monopoly, there is: A. As much consumer surplus as in the case of monopolistic competition B. Zero consumer surplus
4. The textbook for an economics class is available in the American version and in a much cheaper Indian version that has the same text, but No colors for the graphs ( the differen in prices is much higher than the difference in costs). Why is this the case?
A. Demand in the US is much more elastic than deman in India B. Demand in the US is much more inelastic than demand in India
Please answer only if you are confident in your answers and can provide explanation! Thank you!! 1. Which of the following statements is TRUE? A. To maximize profits, monopolists with always set a higher price in markets with more inelastic demand curves. B. Monopolists typically prefer not to segment markets C. Even if demand curves are identical, it is still typically profit maximizing for monopolists to charge different prices in different markets
2. On Black Fridays, most retail outlets have major store wide sales. Yet, as one of the busiest shopping days in the US, one would expect prices to increase, not decrease. Price discrimination explains the answer to this question because price:
A. Sensitive shoppers are more likely to want to stay away from Black Friday B.insensitive shoppers will stay away to avoid the crowds C. Sensitive shoppers are more likely to notice tying and bundling tricks
3. In the case of a perfectly price-discriminating monopoly, there is: A. As much consumer surplus as in the case of monopolistic competition B. Zero consumer surplus
4. The textbook for an economics class is available in the American version and in a much cheaper Indian version that has the same text, but No colors for the graphs ( the differen in prices is much higher than the difference in costs). Why is this the case?
A. Demand in the US is much more elastic than deman in India B. Demand in the US is much more inelastic than demand in India
Please answer only if you are confident in your answers and can provide explanation! Thank you!! A. To maximize profits, monopolists with always set a higher price in markets with more inelastic demand curves. B. Monopolists typically prefer not to segment markets C. Even if demand curves are identical, it is still typically profit maximizing for monopolists to charge different prices in different markets
2. On Black Fridays, most retail outlets have major store wide sales. Yet, as one of the busiest shopping days in the US, one would expect prices to increase, not decrease. Price discrimination explains the answer to this question because price:
A. Sensitive shoppers are more likely to want to stay away from Black Friday B.insensitive shoppers will stay away to avoid the crowds C. Sensitive shoppers are more likely to notice tying and bundling tricks
3. In the case of a perfectly price-discriminating monopoly, there is: A. As much consumer surplus as in the case of monopolistic competition B. Zero consumer surplus
4. The textbook for an economics class is available in the American version and in a much cheaper Indian version that has the same text, but No colors for the graphs ( the differen in prices is much higher than the difference in costs). Why is this the case?
A. Demand in the US is much more elastic than deman in India B. Demand in the US is much more inelastic than demand in India
Please answer only if you are confident in your answers and can provide explanation! Thank you!!
Explanation / Answer
1. A. To maximize profits, monopolists with always set a higher price in markets with more inelastic demand curves.
Inelastic demand for a good means people demand same units of commodity even when price of commodity rises.
2. B. insensitive shoppers will stay away to avoid the crowds
To avoid crowd, price insensitive people pays more price for the commodities. So, shopkeepers will charge more price and earn huge profit.
3. B. Zero consumer surplus
Because under perfectly price-discrimination, monopoly firm charges the price from different customers according to their willingness to pay. They transfer all consumer surplus into producer surplus so consumer surplus becomes zero.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.