Explain how and why a monopolist would try to price

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Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10b, then national saving?

For each of the following examples, explain how and why a monopolist would try to price-discriminate: Providing air travel for business people and tourists; A fast-food restaurant that serves business people and retired people; A theater that shows the same movie to large families and to individuals and couples.

 

Reference no: EM1351278

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