A monopolist finds that a person';s demand for its product depends on the person';s age.The inverse demand function of someone of age y; can be written p = A(y)-q where A(y) is an increasing function of y.The product cannot be resold from one buye
A monopolist finds that a person';s demand for its product depends on the person';s age.The inverse demand function of someone of age y; can be written p = A(y)-q where A(y) is an increasing function of y.The product cannot be resold from one buyer to another and the monopolist knows the ages of its consumers.If the monopolist maximizes its profits:
A.older people will pay higher prices and purchase less of this product.
B.older people will pay higher prices and purchase more of this product.
C.older people will pay lower prices and purchase more of this product.
D.everyone pays the same price but old people consume more.
正确答案:older people will pay higher prices and purchase more of this product.
- 上一篇:A monopolist is able to practice third degree price discrimination between two markets.The demand function in the first market is q = 500-2p and the demand function in the second market is q = 1500-6p.To maximize his profits, he shoul
- 下一篇:Third degree price discrimination occurs when a monopolist sells output to different people at different prices, but every unit that an individual buys costs the same amount.。