If a firm is able to convert every dollar of consumer surplus to economic profit, the firm has achieved
A) discrimination among units of a good.
B) discrimination between groups of buyers.
C) perfect price discrimination.
D) perfect cost minimization.
E) the normal amount of economic profit.
C
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The authors note that advertising can make the consumer demand for a product more elastic (price responsive) by expanding the potential range of consumers
As this change in demand occurs (ceteris paribus), what happens to the optimal advertising-sales ratio? A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question
The producer price index is considered a good predictor of future consumer prices because increases in input prices:
A. eventually make it to consumers when they buy the final product. B. are accounted for in PPI, and therefore this automatically adjusts the CPI. C. are observed first in the PPI, adjusting the CPI downward. D. are used by consumers to make decisions on what to buy.
Which of the following is a decision that economists study?
a. how much people work b. what people buy c. how much money people save d. All of the above are correct.
A popular resort restaurant will maximize profits if it chooses to stay open during the less-crowded "off season" when its total revenues exceed its fixed costs
a. True b. False Indicate whether the statement is true or false