Economics Quiz 9

If R2L is able to maximize its profits, then the profit-maximizing

1500 25 per month

Consider what will happen if the cable TV company

1500 households 30 per month

Now suppose that the city of springfield

19 per month 3000 households

If the city of springfield forces R2L to charge its customers

10,000

Assuming the average total cost is approximately $23 per month

10,500 per month

Monopoly is a market structure characterized by:

a single seller, a market with barriers to entry the firm having significant price control, a good or service for which there are no close substitutes

The _ price occurs when the price is equal to the average total cost.

normal profit

First-degree price discrimination is

the practice of charging every consumer the price that she is willing and able to pay for something the practice of charging the maximum possible price for each unit which enables the firm to capture maximum surplus for itself