Price ceilings sometimes result in some buyers and sellers purchasing the good at prohibited prices

If a union sets the wage rate to maximize the total wage receipts of its members, the marginal revenue would be

A) zero. B) negative. C) positive, but greater than 1. D) positive, but less than 1.

You expect one-third of your customers to be high value, willing to pay $9 for your product, and the other two-thirds to be low value customers willing to pay only $3 . You cannot tell them apart. If the product costs $3, and you charge $9, what is your expected profit?

a. $1 b. $2 c. $3 d. $4