Which is not true of price discrimination?
A. Successful price discrimination requires that different segments of the market have different demand elasticities
B. Successful price discrimination will provide the firm with more profit than if it does not discriminate
C. Successful price discrimination implies that the producer can separate customers into easily identifiable groups
D. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly
D. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly
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In the table above, Jack's comparative advantage is producing ________ and Jill's comparative advantage is producing ________
A) clothing; food B) clothing and food; nothing C) nothing; clothing and food D) food; clothing E) clothing; clothing
Open Market operations consist mainly of ________
A) the government buying and selling private securities in the open market B) the Fed buying and selling government securities in the open market C) the government selling its own securities in the open market D) the Fed setting rates for securities traded in the open market E) none of the above
Price doesn't change in a market-day supply curve
Indicate whether the statement is true or false
Suppose that an MBA degree creates no externality because the benefits of an MBA are captured by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
a. The equilibrium quantity of MBAs will equal the efficient quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the efficient quantity of MBAs. c. The equilibrium quantity of MBAs will be less than the efficient quantity of MBAs. d. The tuition paid by the student would be exceed the efficient amount.