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Econ 3251 Mizzou Exam 3 Questions And 100% Correct Answers
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Econ 3251 Mizzou Exam 3 Questions And 100%Correct Answers
Monopolist worry about ____ and _____ because if those change the price may as well. -
ANSWER Marginal cost and demand curve
When a monopolist enters a _(in elastic/elastic) portion, they are unprofitable. -
ANSWER Inelastic
The more _(vertical/horizontal) the more elastic - ANSWER Vertical
Monopolies have greater power if the elasticity of demand is _(inelstic/elastic) -
ANSWER Inelastic
the Lerner index curve helps determine - ANSWER The rate of markup for firms with
market power.
Markup is - ANSWER The percentage of a firms price that is greater than it's MC
When do monopolist lose power - ANSWER When there are substitutes in a market
For price discrimination to be present - ANSWER 1) the firm must have market power
2) the firm must be able to identify its customers demand curves
3) must be able to prevent resale or arbitrage
first degree price discrimination first - ANSWER charging each individual customer a
different price based on their willingness to pay
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