22) Roxie's Movie Theatre has a monopoly and discovers that at $12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table above reveals the results of the survey. Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of a showing a movie is $6. Roxie's charges ________ on weekdays and ________ on weekends.
|
Price (dollars per movie) |
Quantity demanded, weekend (movies per week) |
Quantity demanded, weekday (movies per week |
|
18 |
0 |
0 |
|
15 |
100 |
0 |
|
12 |
200 |
0 |
|
9 |
300 |
100 |
|
6 |
400 |
200 |
|
3 |
500 |
300 |
22) Roxie's Movie Theatre has a
A) $9; $12
B) $6; $15
C) $6; $18
D) $3; $12
23) If a monopolist can perfectly price discriminate, it will
A) charge the same price for each unit sold.
B) produce until price
C) not be concerned with the market demand.
D) charge a different price for every unit sold.
24) A perfect price discriminator
A) charges the maximum price for each unit that consumers are willing to pay.
B) is able to convince consumers to pay more for each unit than they are willing to pay.
C) is unable to make an economic profit.
D) disregards the market demand curve.
25) Which of the following is true for a perfect price-discriminating monopoly?
A) P = MR for each unit sold
B) P =
C) P = MC for each unit sold
D) P > MC for each unit sold
26) If a monopolist can perfectly price discriminate, then
A) price equals average cost for each unit sold.
B) price equals marginal cost for each unit sold.
C) price equals marginal cost for the last unit sold.
D) the firm can ignore the marginal cost curve.
27) For a monopoly able to practice perfect
A) supply curve is the same as the marginal cost curve.
B) supply curve is the same as the marginal revenue curve.
C) demand curve is the same as the marginal cost curve.
D) demand curve is the same as the marginal revenue curve.
28) If a monopolist can perfectly price discriminate, then
A) it will charge just two different prices in two different markets.
B) it will not give a discount to those who buy in bulk.
C) the
D) there will be no
29) When a monopoly perfectly price discriminates, there is ________.
A) no
B) an increase in supply
C) no consumer surplus
D) a large consumer surplus
30) Perfect price discrimination
A) turns all the producer surplus into consumer surplus.
B) turns all the consumer surplus into economic profit.
C) creates a deadweight loss.
D) cannot result in profit maximization.
31) Which of the following is true about a perfect price discriminating monopolist?
A) There is inefficiency.
B) All consumers pay a price equal to marginal cost.
C) There is no consumer surplus.
D) There is zero economic profit.
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