Assume a firm organizes all individuals by their willingness to pay (least to most). If the firm starts to perfectly price discriminate, what is likely to happen?
A) Consumers start to arbitrage amongst themselves.
B) The firm's profits will be maximized.
C) The firm's costs will be minimized.
D) The firm starts to arbitrage with consumers.
A
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What will be an ideal response?
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A) autonomous tightening of monetary policy B) an increase in the nominal interest rate C) an increase in inflation D) all of the above E) none of the above
The per-worker production function flattens out due to ________
A) the negative relationship between price and quantity demanded B) the positive relationship between price and quantity demanded C) the diminishing marginal product of capital D) an increase in the general level of prices
Which of the following provide increased competition for public schools?
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