An implication of the taste-for-discrimination model is that:
A. discrimination can lower a firm's production costs.
B. discrimination will move a firm along its declining average total cost curve.
C. other things equal, nondiscriminating firms will have lower production costs than
discriminating firms.
D. other things equal, discriminating firms will have lower production costs than
nondiscriminating firms.
Answer: C
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To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. If the U.S
Congress passes an economic stimulus package that pays $300 to each person, how does this affect the budget line for each consumer? A) Makes the budget line steeper B) Makes the budget line flatter C) Parallel outward (rightward) shift D) Parallel inward (leftward) shift E) none of the above
Prospect theory implies that consumers are motivated by
a. The actual price level b. The distance of the price from the reference price c. All of the above d. None of the above
If four firms comprise the entire golf club industry, the market would be
a. competitive. b. characterized by interdependence of firms. c. a duopoly. d. a monopoly.
Suppose the Fed requires banks to hold 9 percent of their deposits as reserves. A bank has $18,000 of excess reserves and then sells the Fed a Treasury bill for $9,000 . How much does this bank now have to lend out if it decides to hold only required reserves?
a. $27,000 b. $27,190 c. $26,190 d. $9,000