Refer to Figure 16-3. Suppose Chantal charges all her customers a uniform price of $10 for a haircut. Which of the following statements is true?
A) Chantal is maximizing revenue in market B.
B) Chantal is selling more than the profit-maximizing quantity of haircuts in market B.
C) Chantal is selling less than the profit-maximizing quantity of haircuts in market B.
D) Chantal will earn a greater profit through uniform pricing than if she practices price discriminates.
B
You might also like to view...
According to the law of supply, producers will
A) change their consumption plans when the price of a good changes. B) change their supply when the price of a good changes. C) change their production plans when the price of a good changes. D) increase their quantity supplied when the price of a good decreases. E) decrease their quantity supplied when the price of a good increases.
A regulated monopoly facing average cost pricing rule will make the same profit as a firm in ________ market does in the long run
A) an unregulated monopoly B) an oligopoly C) a perfectly competitive D) All of the above answers are correct.