Third-degree price discrimination is more common in service industries because ________.
A. all firms in these industries have significant monopoly power over price
B. low price buyers will find it virtually impossible to resell the products of such industries to high price buyers
C. the costs of providing such industries' products to different groups of buyers vary dramatically
D. the price elasticity of demand is the same for all groups of buyers in these industries
Answer: B
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In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP
a. Keynesian, supply b. Classical, demand c. Intermediate, demand d. Intermediate, supply
Fiscal policy works principally through shifts of the aggregate demand curve.
Answer the following statement true (T) or false (F)
A consumer has spent all of his income on pizza and movies. The price of a piece of pizza is $1 and the price of a movie is $6. The marginal utility of the last piece of pizza is 5 and the marginal utility of the last movie is 24. The consumer has
A) maximized utility. B) not maximized utility. He should cut back on movies and buy more pizza. C) not maximized utility. He should cut back on pizza and buy more movies. D) not maximized utility. He should cut back consumption of each good.
Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is p = 90 - 2Q. What will be the price, quantity, and profit for this firm?
What will be an ideal response?