Question from Past Microeconomics Qualifying ExamEdit
Fall 2000 - Section I, Question ten, George Mason University
True, False, Uncertain. Determine whether or not each of the following statements are true or false. Explain your reasoning briefly in a paragraph or two. (The explanation is often more important than the answer given). Include a carefully labeled diagram or game matrix if it helps to clarify your answer.
A monopolist faced with a straight lined demand curve and forced to charge a uniform price to all buyers, can maximize his revenue by setting the quantity sold equal to half that which would be sold at a price of zero.