If Tom can price-discriminate perfectly which of the potential buyers will purchase a turkey?

__(Figure: PPV) Examine the figure PPV. The figure shows the demand and marginal revenue for a Show more Q1: __(Figure: PPV) Examine the figure PPV. The figure shows the demand and marginal revenue for a pay-per-view football game from a cable TV company. Assume that the marginal cost and average cost are a constant $20. If the cable company is in a perfectly competitive industry how much is deadweight loss? A) $0 B) $320 C) $160 D) $500 Q2: __(Figure: PPV) Examine the figure PPV. The figure shows the demand and marginal revenue for a pay-per-view football game from a cable TV company. Assume that the marginal cost and average cost are a constant $20. If the cable company is in a perfectly competitive industry how much is consumer surplus? A) $0 B) $320 C) $160 D) $500 Q3: __(Table: Turkeys) Examine the table Turkeys. Trader Tom is a monopolist that sells fried turkeys for Thanksgiving dinner for a constant marginal and average cost of $10 per turkey. Assume that Tom has no fixed cost. Tom has 6 potential customers each of which will buy at most one turkey if the price is just equal to or lower than their willingness to pay which is shown in the table. If Tom can price-discriminate perfectly which of the potential buyers will purchase a turkey? A) Fred B) Fred and Ed C) Allen Bess and Cal D) Allen Bess Cal Dean and Ed Q4: When a monopolist practices price discrimination compared to a single-price monopolist monopoly profits will: A) remain the same. B) increase. C) decrease. D) increase initially and then return to its original level. Q5: __(Table: Turkeys) Examine the table Turkeys. Trader Tom is a monopolist that sells fried turkeys for Thanksgiving dinner for a constant marginal and average cost of $10 per turkey. Assume that Tom has no fixed cost. Tom has 6 potential customers each of which will buy at most one turkey if the price is just equal to or lower than their willingness to pay which is shown in the table. If Tom acts as a single-price monopolist to maximize profits how much is producer surplus? A) $10 B) $20 C) $25 D) $30 Q6: Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way then its total economic profit will: A) fall. B) remain unchanged. C) rise. D) fluctuate indeterminately. Q7: Airlines that engage in price discrimination charge higher prices to business travelers because their: A) demand is more elastic than that of other travelers. B) demand is more inelastic than that of other travelers. C) supply is more elastic than that of other travelers. D) supply is more inelastic than that of other travelers. Q8: __(Figure: Short-Run Monopoly) Examine the figure Short-Run Monopoly. The profit-maximizing price is price: A) N. B) O. C) P. D) Q. Show less

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