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| Page 135 Cost estimates require estimating explicit and implicit costs at each possible output level. While revenue estimation is easy for perfect competitors, cost estimation is as difficult as it is for other businesses. Page 142 No. As in the case of businesses in imperfectly competitive markets, a monopolist chooses one level of output and then finds the highest possible price at that quantity. So it is impossible for the monopolist to devise a supply curve independent of the demand conditions it faces. Page 147 No. Some consumers can buy a product more cheaply as a result of price discrimination than would be the case if price-discriminating businesses instead charged all their customers the same price. Page 149 Official concentration ratios underestimate competition in Canada’s bookselling industry, because they do not take into account foreign booksellers who sell to Canadian consumers through online and mail-order services. |