A Monopolist Has a Constant Marginal Cost of $2 Per

question 9

Multiple Choice

A monopolist has a constant marginal cost of $2 per unit and no fixed costs.He faces separate markets in the United States and England.He can set one price p₁ for the U.S.market and another price p₂ for the English market.If demand in the United States is given by Q₁ = 7,000 - 700p₁ and demand in England is given by Q₂ = 3,200 - 400p₂, then the price in the United States will

• A)be smaller than the price in England by $1.
• B)be larger than the price in England by $3.
• C)equal the price in England.
• D)be larger than the price in England by $1.
• E)be smaller than the price in England by $3.

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Definitions:

African-American Workers

Refers to individuals of African descent in the United States who are part of the labor force, often highlighting their unique historical and socio-economic experiences.

Discrimination Coefficients

Metrics used in econometrics and statistical analyses to measure the extent of discrimination or bias present in a model or decision-making process.

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or week, for their work services.

Racial Prejudice

A bias against individuals based on their race, often manifesting in negative attitudes or unfair treatment.