Suppose that a price-discriminating monopolist divides its market into two segments. The firm will charge the lower price in the market segment where consumers
a. have relatively less elastic demand
b. have relatively more elastic demand
c. attach a higher marginal value to each unit of the good
d. have perfectly inelastic demand
e. attach higher average value to units of the good
B
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What determines the acceptability of dollar bills as a medium of exchange?
A) our society's willingness to use green paper notes issued by the Federal Reserve as money B) the willingness of the Federal Reserve to redeem dollar bills for gold C) the willingness of the U.S. Treasury to redeem dollar bills for gold D) the public's fear that failing to accept dollar bills will trigger a hyperinflation
An expansionary monetary policy in the United States should
A) decrease the foreign currency price of U.S. exports. B) cause the dollar to appreciate. C) decrease the dollar price of imports. D) decrease net exports.
Which of the following represents the lending capacity of an individual (non-monopoly) bank?
A. (Total reserves - required reserves) × multiplier. B. Total reserves - required reserves. C. 1 ÷ (required reserve ratio). D. Required reserve ratio × total deposits.
Which of the following does not correctly characterize modern economic growth?
A. It spread slowly across the globe, with some societies not having experienced it yet B. It has occurred only in the last 200 or so years C. It drastically alters the culture and politics of society D. It has not affected the average lifespan of human beings