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In the town of Woodland, California, there are many dentistslong dashthe market is competitivelong dashbut only one eye doctor.

In the town of​ Woodland, California, there are many

dentistslong dash—the

market is

competitivelong dash—but

only one eye doctor. Are senior citizens more likely to be offered discount prices for dental exams or for eye​ exams? Why?

Seniors are more likely to get a discount for

A.

a dental exam because as a monopolist the eye doctor​ doesn't have to discount the price to get business.

B.

an eye exam because a firm must have market power to price discriminate.

C.

an eye exam because a firm must know reservation prices to price discriminate.

D.

an eye exam because a monopoly will offer discounts to promote goodwill to avoid government regulation.

E.

a dental exam because firms in a competitive market must fiercely compete for every customer.

Top Answer

the correct answer is: B. an eye exam... View the full answer

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Other Answers

b) Seniors are more likely to get a discount... View the full answer

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