At the current price of a good Al's consumer surplus equals 8 and Ben's consumer surplus equals 15. By using two-part pricing a monopolist could increase his profit by

General Motors was able to gain advantage over Ford in the 1920s primarily because:

a. the latter failed to adapt its product policy and organization structure to meet the demands of the changing market. b. the former had always been an M-form and better managed organization. c. the latter charged higher prices for its cars than General Motors. d. the former was vertically integrated with better control over its input production than Ford.

A corporation is liable to pay to bondholders the

a. current interest rate in the bond market. b. current yield on the particular bond. c. coupon rate on the bond. d. yield on the bond at maturity.