II: a monopolist is able to increase the amount of product she sells from 400 to
ID: 2495473 • Letter: I
Question
II: a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product from $50 to $45, her marginal revenue is:
$-55.
$55.
$1,100.
$-1,100.
III: A price-discriminating monopolist can increase profits by:
charging a higher price to everyone than it would if it could not price discriminate.
charging a lower price to everyone than it would if it could not price discriminate.
charging a higher price to those with less elastic demand and a lower price to those with more elastic demand than it would if it could not price discriminate.
charging a lower price to those with less elastic demand and a higher price to those with more elastic demand than it would if it could not price discriminate.
$-55.
$55.
$1,100.
$-1,100.
Explanation / Answer
II)Her marginal Revenue is -$55
III: A price-discriminating monopolist can increase profits by charging a higher price to those with less elastic demand and a lower price to those with more elastic demand than it would if it could not price discriminate.