A perfect price discriminator receives a price equal to marginal revenue for each unit
What will be an ideal response?
True. A perfect price discriminator sets the price of each unit sold equal to the reservation price of the good. The price equals the maximum price a consumer will pay for a given unit. Thus, the price of each unit will equal the marginal revenue of each unit.
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Speculators are primarily interested in
A) betting on anticipated changes in prices. B) reducing their exposure to the risk of price fluctuations. C) increasing market liquidity. D) reducing the spread between bid and ask prices on bonds.
Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the level of employment?
A) Increases, but some unemployment remains B) Increases, and the labor market reaches full employment C) Decreases D) Does not change
Taxes create deadweight loss when they
a. distort behavior. b. cause the price of the product to increase. c. don't raise sufficient government revenue. d. cannot be computed easily.
Which of the following has been suggested as a cause of the Great Depression?
a. a decline in the money supply b. a decrease in stock prices c. the collapse of the banking system d. All of the above are correct.