A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is a possible explanation for this failure?
a. There was nothing to prevent the students from reselling the fruit juice to other consumers.
b. The fruit juice manufacturer produced in a perfectly competitive market.
c. The two groups of consumers probably have the same demand elasticity for fruit juice.
d. The cost of producing the product is relatively high.
e. Demand for fruit juice is probably inelastic.
A
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If the cost of labor increases, the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
"Only individual members of society earn income, not society itself." This statement is most closely associated with the political philosophy of a
a. utilitarian. b. liberal. c. libertarian. d. None of the above is correct.
If the demand for fast food declines sharply, the marginal revenue product curve for fast food workers will
A. shift to the left. B. shift to the right. C. stay exactly where it is.
The graph shown portrays a subsidy to buyers. The amount of money spent on this subsidy by the government is:
A. $2,400. B. $3,600. C. $800. D. $6,000.