The Table Given Below Shows the Price, Marginal Revenue and Marginal

question 57

Multiple Choice

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Price discrimination is best described as a monopolist:

• A)selling a product at the fixed market determined price.
• B)charging buyers an excessive price for the product.
• C)charging different customers different prices when the costs are equal.
• D)selling a product for different prices during two different periods of time.
• E)charging same prices to different customers when the costs are different.

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Definitions:

Government Deficit

A situation where a government's expenditures exceed its revenues.

Loanable Funds

A term in economics that refers to all the money available for borrowing in the financial markets, determined by the level of savings vs. the demand for borrowing.

NPV

Net Present Value; a calculation used to assess the value of an investment, taking into account the present value of its cash inflow and outflow over time.

Interest Rates

The percentage at which interest is paid by borrowers for the use of money they borrow from a lender.