Price discrimination refers to
A. selling a product at different prices, with the price difference being unrelated to differences in marginal cost.
B. selling a product at different prices according to the differences in marginal cost of providing it to different consumers.
C. charging the same prices to all consumers but selling them different quantities.
D. a deliberate effort on the part of a monopoly producer to confuse consumers.
Answer: A
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If events A and B are independent, then Pr[A and B] will be:
a. Pr[A]Pr[B]. b. Pr[A]-Pr[B]. c. Pr[A]?Pr[B]. d. Pr[A]?Pr[B].
If the index of prices paid by farmers is 140 and the index of prices received by farmers is 140, then the parity price ratio would equal
a. 100 b. 80 c. 120 d. 140 e. 0
If the general level of prices is higher than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. a recession b. output less than the economy's long-run potential c. a sharp reduction in imports d. an unemployment rate that is less than the economy's natural rate of unemployment
Employers may choose to pay their workers a wage that exceeds the equilibrium wage according to
a. efficiency-wage theories. b. equilibrium wage theories. c. screening theories. d. signaling theories.