(Scenario: a Small-Town Monopolist)Use Scenario: a Small-Town Monopolist

question 84

Multiple Choice

(Scenario: A Small-Town Monopolist) Use Scenario: A Small-Town Monopolist.Compared with charging a single price,the deadweight loss: Scenario: A Small-Town Monopolist
A monopolist sells cable subscriptions in a small town and finds that it can sell 100 subscriptions when the price is $15 a week and 175 subscriptions when the price is $10 a week.The MC for the provision of the cable is $5 a week.There are no fixed costs.

• A)increases when this monopolist price-discriminates.
• B)decreases when this monopolist price-discriminates.
• C)stays the same when this monopolist price-discriminates.
• D)is equal to zero.

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Definitions:

Conditioned Stimulus (CS)

A stimulus that was neutral but becomes able to provoke a conditioned response after being paired with an unconditioned stimulus.

Conditioned Response (CR)

A learned response to a previously neutral stimulus that has become conditioned through association with an unconditioned stimulus.

Conditioned Response (CR)

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Classical Conditioning

Classical conditioning is a learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.