All of the following are microeconomic consequences of inflation except
A. A wealth effect.
B. An income effect.
C. A profit effect.
D. A price effect.
Answer: C
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Which of the following is true of banks? a. Banks reduce the opportunity cost of holding idle cash
b. Banks act as intermediaries between the government and private investors. c. Banks can reduce risk by lending to rich borrowers. d. Banks reduce the transaction costs of borrowing and lending money. e. Banks can reduce risks by extending more loans.
____________ is the change in total cost that results from a one unit increase in output
Fill in the blank(s) with the appropriate word(s).
Why is it important that a firm have different groups of consumers with different demand elasticities if it wishes to engage in price discrimination?
What will be an ideal response?
Suppose an industry has total sales of $25 million per year. The two largest firms have sales of $6 million each, the third largest firm has sales of $2 million, and the fourth largest firm has sales of $1 million. The four-firm concentration ratio for
this industry is A) 36 percent. B) 60 percent. C) 50 percent. D) 25 percent.