The case where a firm sells each unit at the maximum amount each customer is willing to pay for it is called
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third degree price discrimination.
D) nonlinear price discrimination.
A
You might also like to view...
Assuming a fully loaned-up banking system and a deposit expansion multiplier of 2, a $10 million government expenditure financed by sales of securities to the banking system will cause the money supply to
A) remain unchanged. B) rise by $5 million. C) rise by $10 million. D) rise by $20 million.
According to the liquidity premium theory, the yield curve normally has a positive slope because
A) short-term interest rates are expected to rise. B) term premiums rise as the time to maturity increases. C) risk premiums rise over time. D) long-term bonds are more liquid than short-term bonds.
What does the existence of labor unions mean for the labor market and for unemployment?
A. Unemployment could reach zero. B. Wage rates could fall below equilibrium level. C. Wage rates could rise above equilibrium level. D. Unemployment could grow to unsustainable levels.
The investment demand curve will shift to the left as the result of:
a. The availability of excess productive capacity b. Business pessimism about future economic conditions c. A decrease in business taxes d. An increase in the interest rate