Which of the following statements about price discrimination is correct?
A. Successful price discrimination will provide the firm with more total profits than if it did not discriminate.
B. Successful price discrimination will provide the firm with lower total profits than if it did not discriminate.
C. Successful price discrimination occurs when there are differences in the costs of producing for different groups of buyers.
D. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price pure monopoly.
Answer: A
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If the market price is $40, the average revenue of selling five units is
A) $8. B) $20. C) $40. D) $200.
If a good is imported into (large) country H from country F, then the imposition of a tariff in country H
A) raises the price of the good in both countries (the "Law of One Price"). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F.
Crowd funding can best be described as:
A) raising funds in a very large market B) raising small amounts of money from large numbers of people C) many firms competing for the same source of funds D) making funds available for a large number of business start ups
The marginal rate of technical substitution at any particular labor-capital bundle is
A. the wage relative to the cost of capital. B. the ratio of labor to capital. C. the slope of the isoquant. D. the slope of the indifference curve. E. the average product of labor relative to the average product of capital.