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参考答案:
举一反三
【单选题】A monopolist can:
A.
sell as much as he wants at the chosen price since he is the only seller.
B.
increase price only if he is willing to reduce output sold.
C.
increase the price of his output and still sell the same quantity.
D.
increase the price of his output and the quantity sold at the same time.
【单选题】Following excercise (2), check the incentive compatibility condition for the H quality monopolist. Which of the following statement is TRUE?
A.
It is possible for the H quality monopolist to signal his quality with advertising spending, because he can be compensated by the high profit in the 2nd period, while L quality firm cannot.
B.
It is possible for the H quality monopolist to signal his quality with advertising spending, because he can gain a higher profit than he would have gained if he were seens as a L quality firm.
C.
It is not possible for the H quality monopolist to signal his quality with advertising spending, because the sacrefice is too large to be compensated by the 2nd period profit.
D.
It is not possible for the H quality monopolist to signal his quality with advertising spending, because his profit is too low compared to the perfect information case.