Shellee heads up a company that has a monopoly on a solar battery technology due to a patent. Shellee wants to raise the price by 50% to increase revenue by 50%. What is she forgetting?
a. When monopolists raises prices, they are breaking the law.
b. When monopolists raise prices, demand falls.
c. Monopolists cannot change revenue by changing prices.
d. Monopolists do not get to price their own products.
b. When monopolists raise prices, demand falls.
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An advantage of imposing a tax on the producer that generates pollution is that
A) the government can keep tabs on exactly what is produced in an industry. B) it forces the polluting producer to internalize the external cost of the pollution. C) it will eliminate pollution. D) a producer can pass the cost of the pollution to consumers.
You have just found the consumer's optimal combination of goods using constrained optimization. The marginal utility of income is the:
A) Cobb-Douglas statistic. B) Hicks factor. C) Slutsky equation. D) Lagrange multiplier.