Consumer surplus is the difference between the highest price someone is willing to pay for a product and the price he actually pays for the product
Indicate whether the statement is true or false
TRUE
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Which of the following is NOT a potential objective of tying strategies used by firms?
A) Reduce production costs and avoid problems associated with diseconomies of scale B) Protect brand image and ensure product quality C) Meter consumption across different buyers in order to collect a two-part tariff D) Extend a firm's market power from one product market into another market
An entrepreneur is a(n):
a. individual who has much education. b. organizer who seeks profitable opportunities and is willing to accept risks. c. business organization that uses inputs to produce output. d. depot or warehouse for commercial products.
The Black Death in fourteenth-century Europe resulted in
a. a lower marginal product of labor of surviving workers. b. a higher marginal product of land. c. economic hardship for surviving peasants. d. economic hardship for surviving landowners.
If leakages are less than injections, ceteris paribus:
(a) National income will increase. (b) National income will decrease. (c) National income will stay in equilibrium. (d) None of the above.