Which of the following is NOT a necessary condition for a firm to price discriminate?
A) The firm must be able to separate markets.
B) Buyers in different markets must have different elasticities of demand.
C) Resale of the product must be preventable.
D) The firm must be a price-taker.
Answer: D
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Discounting is the process whereby
A) present values are adjusted to their future value, using the interest rate. B) future values are converted to their value today, using the interest rate. C) product prices are reduced (discounted) to increase sales and profits today. D) future values are adjusted for inflation.
To understand why wages are so low and the process by which wages are determined, we must focus on the supply side of the labor market
Indicate whether the statement is true or false
The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic. B) upward sloping. C) downward sloping. D) perfectly elastic.
The winner's curse is not useful in understanding the performance of companies after a merger
Indicate whether the statement is true or false