Market power conduct by a price maker

HoloIMAGine has patented a holographic technology which makes 3-D photography obtainable to consumers. The illustrated figure shows such that HoloIMAGine: (1) makes profit equal to area dcP0P3 since this can price discriminate perfectly. (2) has market power as a price maker. (3) faces a perfectly price inelastic market demand curve. (4) has a supply curve that equals the marginal cost [MC] curve above point b. (5) is a quantity-adjusting price gouger firm.

374_Market Power1.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Determine income in Loren curve When

When one family held ALL the income it would be shown upon the Lorenz curve as: (1) line 0A0'. (2) line 0B0'. (3) line 0C0'. (4) line 0D0'. (5) line 0E0'.

Q : Problem on relative monetary values The

The relative monetary values an individual consumer subjectively puts on containing a bit more or less of a good are termed as: (i) Consumer preferences. (ii) Demand prices. (iii) Psychic prices. (iv) Subliminal prices. (v) Consumer utilities.

Q : Find unskilled labor for no minimum

When there is no minimum legal wage in market for unskilled labor, approximately: (w) 6,000 unskilled workers would earn about $5 per hour. (x) 3,000 unskilled workers would earn about $8 per hour. (y) 4,500 unskilled workers would ea

Q : Marginal social costs exceed the

When governments compelled pharmaceutical producers to manufacture and sell at least Q3 penicillin, in that case the: (1) purely-competitive firms which produced penicillin would experience persistent economic profits. (2) resulting inadequate antibiotic tr

Q : Explain about the minimum legal price

Please help me to solve the problem that is given below. A minimum legal price is a price: (1) foundation. (2) umbrella. (3) ceiling. (4) cut. (5) floor. I need a good ans

Q : Needs firm by maximizing profits for

Maximizing profit needs every firm to manufacture the output level where marginal is: (i) revenue is maximized. (ii) cost equals the lowest possible average total cost. (iii) revenue equals marginal cost. (iv) revenue exceeds ma

Q : Contradiction of the law of diminishing

Can someone help me in finding out the right answer from the given options. Which of the following below seems the contradiction of the law of diminishing marginal utility? (1) Ken enjoys his 13th beer of the evening more than his initial. (2) Joan recognizes that her

Q : Price discriminate maximizes joint

When a successful cartel which cannot price discriminate maximizes the joint profits of its members: (1) the marginal social benefits of additional output exceed the marginal social costs of output. (2) this is impossible for any consumer to gain with

Q : Graphical shift of supply curve When

When market supply and demand curves for Velcro shoelaces were projected into a screen at the front of this room, a raise in the supply of Velcro shoelaces would be illustrated graphically by a shift of supply curve: (1) Towards the center of Earth. (2) To the left. (

Q : Marginal revenue of price taker firm A

A price-taker firm’s marginal revenue is: (w) constant and identical to price. (x) less than average revenue. (y) sufficient to cover all short-run costs. (z) determined by the firm’s supply curve.

Discover Q & A

Leading Solution Library

Avail More Than 1434073 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1955609
Asked

3,689

Active Tutors

1434073

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment