An example of price discrimination is charging more for steak than for a hamburger.
a. true
b. false
Answer: b. false
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Pietro is a manager at a carwash. He has hired 10 workers to wash and detail cars for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $9 per hour to wash and detail cars, or he can pay his workers $12 for each car a worker washes and details. (It takes 75 minutes, on average, for an employee to wash and detail a car.) If Pietro wants to maximize the number of cars his workers wash and detail in one day, which payment scheme should he use? Explain.
In a labor-market separating equilibrium with high-skill and low-skill workers and where a costly educational degree is used solely as a signal device, government can increase total social welfare by
A) subsidizing school for low-skill workers. B) subsidizing school for all workers. C) eliminating schooling, i.e., banning wasteful signaling. D) subsidizing school for high-skill workers.
Over the long run, stock prices have
a. generally fallen. b. generally stayed roughly constant. c. generally risen. d. shown no identifiable pattern of change.
Refer to the above figure. Minimum efficient scale is at output rate
A. Q1. B. Q2. C. Q3. D. Q5.