According to the graph shown, if the market goes from equilibrium to having its price set at $10:
A. seven fewer units will be exchanged.
B. consumer surplus will decrease.
C. deadweight loss will occur.
D. All of these are true.
Answer: D
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In a simultaneous game where both players prefer doing the opposite of what the opponent does, a Nash equilibrium does not exist
Indicate whether the statement is true or false
Textbook publishers often sell the same or essentially identical books in different countries for different prices. Is this an effective form of group price discrimination?
A) Yes, because the first sale doctrine does not apply to overseas sales B) No, because poor foreign students can't afford the books C) No, because people are allowed to buy the books in one country and sell them in another, making money on the arbitrage opportunity D) Yes, because the textbooks are actually different since they have a different cover and an "international" label on them
For a perfectly competitive firm, when MC is less than MR
A) the producer has an incentive to expand output. B) the producer has an incentive to decrease output. C) the producer has no incentive to change production. D) economic profits must be positive.
In a bilateral monopoly, the wage rate that is determined in the market
A) is equal to MFC. B) is equal to MRP. C) is indeterminate. D) is the same as in a perfectly competitive market.