What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $2,800 . Profits=$5,600
b. Bundle the goods at $4,000 . Profits=$8,000
c. Charge $2,800 for good 1 and charge $1,700 for good 2; Profits=$4,500
d. Charging the lowest price for each good individually is the best pricing strategy; profits = $7,000
b
You might also like to view...
The slope of the aggregate supply curve shows that the ________ the price level, the ________
A) lower; is the quantity of potential GDP supplied B) lower; greater is the quantity of real GDP supplied C) higher; is the quantity of potential GDP supplied D) higher; greater is the quantity of real GDP supplied E) higher; smaller is the quantity of real GDP supplied
The slope of an indifference curve is called the
a. bliss gradient. b. happiness slope. c. average transformation rate. d. marginal rate of substitution.