The Figure Given Below Represents Two Monopolists James and Jerry

question 6

Multiple Choice

The figure given below represents two monopolists James and Jerry.James produces Good A using the input Good B which is produced by Jerry and has no other variable costs.James is the only consumer of Good B, and the marginal cost incurred by Jerry to produce Good B is zero.DA and DB represent the demand curves for Good A and Good B respectively.MRA and MRB represent the marginal revenue received from Good A and Good B respectively.It takes one unit of A to produce a unit of B.


-Refer to Figure.Which of the following agreements between James and Jerry would be feasible?

• A)James pays Jerry an amount above $48 only if Jerry agrees to produce 8 units.
• B)James pays Jerry and amount below $24 only if Jerry agrees to produce 8 units.
• C)James pays Jerry an amount above $24 only if Jerry agrees to produce 8 units.
• D)James pays Jerry an amount below $12 only if Jerry agrees to produce 8 units.

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Definitions:

Discouraged Workers

Individuals who would like to work but have given up looking for a job.

Marginally Attached Workers

Individuals who are not in the labor force, want and are available for work, and have looked for a job sometime in the past 12 months but not in the four weeks preceding the survey.

Bureau of Labor Statistics

The Bureau of Labor Statistics is a government agency that collects, analyzes, and disseminates various data related to employment, wages, and other economic indicators in the United States.

Official Unemployment Rate

The percentage of active job seekers within the labor force who are presently without a job.