Because each customer pays according to her willingness to pay, a consumer maximizes her consumer surplus under first-degree price discrimination

Assume the current price of good X is too high, i.e., it is above the equilibrium price. Describe the changes that would occur in a market as a result, i.e., explain how the market would adjust to equilibrium

What will be an ideal response?

The existence of economies of scale is one reason oligopolies exist because

A) a firm is able to increase price leading to increased profits. B) the marginal cost decreases as output increases. C) of strategic dependence. D) as output increases average total cost decreases leading to large-scale firms.