Monopolies ________ fair and ________ efficient.
A) are never; are always
B) might be; are always
C) are always; are not
D) are always; are always
E) might be; might be
To be able to price discriminate, a firm must
A) be able to identify and separate different types of buyers.
B) lower prices for all customers.
C) raise prices for all customers.
D) sell a product that can be resold.
E) Both answers B and C are correct.
A price-discriminating monopoly charges
A) different prices to buyers for different products.
B) the same price to every buyer for the same product.
C) a different price to different buyers, because the costs are different.
D) each customer a price that equals the marginal cost of serving that customer.
E) a different price to different types of buyers for the same product, even though there are no differences in costs.
Arnie's Airlines is a monopoly airline that is able to price discriminate. If Arnie's decides to price discriminate, then
A) consumer surplus decreases.
B) Arnie's revenues decrease.
C) Arnie's will see all of his tickets at a single price.
D) Arnie's sells fewer tickets.
E) Arnie's profit decreases.