In the real world, price discrimination is more difficult because:
A. to perfectly discriminate, the firm must read people's minds to know their willingness to pay.
B. it is difficult to identify and verify different groups.
C. it can be challenging to prevent the resale of goods from one group to another.
D. All of these statements are true.
Answer: D
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In the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the imported good they are ________
A) positive; negative B) positive; positive C) negative; positive D) ambiguous; positive E) positive; ambiguous
In the current debate over fiscal policy, advocates of returning to significant budget surpluses
A) contended that the economic miracle of the late 1990s caused the budget surpluses. B) think that tax cuts will benefit the wealthy. C) believe that tax cuts will continue the dependence of the United States on borrowing from foreigners. D) All of the above.
The four-firm concentration ratio
A) indicates the total profitability among the top four firms in an industry. B) is an indicator of the degree of monopolistic competition. C) indicates the presence and intensity of an oligopoly market. D) is used by the government as a basis for anti-trust cases.
The distinction between endogenous and exogenous variables is
A) that exogenous variables are determined inside the model and endogenous variables are determined outside the model. B) dependent on the sample size: for n > 100, endogenous variables become exogenous. C) depends on the distribution of the variables: when they are normally distributed, they are exogenous, otherwise they are endogenous. D) whether or not the variables are correlated with the error term.