Question $11(1$ point$)$

$$

$$McDonald$\text{'}$s restaurant located near the high school offered a Tuesday special for high school students.$$ If high school students showed their student ID cards, they would be given $50$ cents off any special meal.$$ This practice is an example of:$$

Question $11$ options:

price discrimination.$$

tying.$$

two$-$part tariff.$$

collusion.$$

$.$

bundling

Question $12(1$ point$)$

$$

Under perfect price discrimination, consumer surplus$$

Question $12$ options:

$$equals zero.$$

$$is maximized. $$

is less than zero.

$$is greater than zero.$$

Question $13(1$ point$)$

$$

$$ A price discriminating monopolist having identical costs in two separated markets should charge a higher price in that market

Question $13$ options:

which has a higher demand.

$$ which has a more elastic demand.

$$ which has a less elastic demand.

$$which has a higher marginal revenue.

Question $14(1$ point$)$

$$

$6)$ A tennis pro charges $$15$ per hour for tennis lessons for children and $$30$ per hour for tennis lessons for adults.$$ The tennis pro is practicing

Question $14$ options:

first$-$degree price discrimination.$$

$$second$-$degree price discrimination.$$

third$-$degree price discrimination.$$

fourth$-$degree price discrimination.$$

fifth$-$degree price discrimination.$$

Question $15(1$ point$)$

$$

Question $15$ options:

$20$ units

$40$ units

$60$ units

$80$ units

Question $16(1$ point$)$

$$

Use the following diagram to answer the question

$$If the monopolist facing the demand curve P $=10-$ Q is a perfectly discriminating monopolist and marginal cost is constant at $$4,$ how much will the firm sell if it profit maximizes?

Question $16$ options:

$6$

$5$

$4$

$10$

None of the above$$

Question $17(1$ point$)$

$$

Which of the following statements regarding price discrimination is false?

Question $17$ options:

In order to capture more surplus, the firm must have some market power.

The firm must have some information about the different amounts people will pay for the product.

The firm must be able to prevent resale.

The firm must be able accurately forecast total sales.

Question $18(1$ point$)$

$$

$$The maximum price that a consumer is willing to pay for each unit bought is the $\_\_\_\_\_\_\_\_$ price. $$

$$

Question $18$ options:

reservation $$

consumer surplus $$

$$

auction $$

$$

choke $$

$$

market $$

Question $19(1$ point$)$

$$

Let the inverse demand curve for a monopolist's product be P $=1002$Q and the marginal cost of production be constant at MC $=10.$ Suppose that the firm considers moving from a uniform pricing strategy to a two$-$block tariff where the first block provides $15$ units at a price of P$1=$ $$70$ and the second block provides an additional $15$ units at a price of P$2=$ $$40.$ How much does the monopolist's profit rise with this scheme?

Question $19$ options:

$225$

$337\mathrm{.}50$

$450\mathrm{.}50$

$512$

Question $20(1$ point$)$

$$

$$A third$-$degree price discriminating monopolist can sell its output either in the local market or on an internet auction site $($or both$).$Having sold all of its output it discovers that the marginal revenue in the local market is $$20$ while its marginal revenue on the internet auction site is $$30.$ To maximize profits the firm should $$

$$

Question $20$ options:

$$

$$

sell less in both markets until marginal revenue is zero. $$

$$

have sold more output in the local market and less at the internet auction site.$$

$$

$$ do nothing until it acquires more information on costs.$$

$$

have sold less output in the local market and more on the internet auction site. $$

$$

sell more in both markets until marginal cost is zero.