In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high-end customers like 5-star hotels a much higher price than it charges local pubs. This discrimination is possible only if:
a. price discrimination is legal in Talisman.
b. we assume Best Drinks can prevent pub owners from buying liquor and selling it to 5-star hotels.
c. consumers in Talisman have similar price elasticities of demand for liquor.
d. we assume Best Drinks is a natural monopoly.
B
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Exhibit 8-1 Disposable income and consumption data Disposable Income(Y) Consumption(C) 0 500 1,000 1,400 2,000 2,200 3,000 2,900 4,000 3,500 5,000 4,000 In Exhibit 8-1, when disposable income (Y) is increased from $1,000 to $2,000, the marginal propensity to consume is:
A. 0.2. B. 0.6. C. 0.8. D. 1.0.
An increase in the degree a good is liked (the increase in the taste for a good) would
A. move its demand curve to the right. B. cause a movement along the demand curve to a (higher price, lower quantity) point. C. move its demand curve to the left. D. cause a movement along the demand curve to a (lower price, higher quantity) point.