Demand for movie rentals is highly elastic. A video store that raises the price of a rental will:

Which of the following will the FTC probably support?

a. a merger that makes entering a market more difficult b. a merger that lowers competition in an industry c. a merger that leads to greater market concentration d. a merger that leads to lower prices for consumers

A monopoly that price discriminates ______

A. benefits buyers because it offers the good at a variety of prices B. gains because it converts consumer surplus to economic profit C. uses resources more efficiently than would a competitive market D. enables buyers to maximize their consumer surplus