Low demand consumers are indifferent between second degree and first degree price discrimination.
Answer the following statement true (T) or false (F)
True
Rationale: In both cases, the monopolist takes all consumer surplus from low demanders.
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Refer to Figure 7.1. At what level of output does average total cost equal marginal cost?
A) Q2 B) Q3 C) Q4 D) Q5 E) none of the above
In the study of labor supply, "leisure" refers to
a. time spent sleeping. b. time spent doing absolutely nothing (except breathing). c. time spent in one's place of residence. d. time spent that is not spent in market work.
According to the equimarginal principle, if the marginal cost of an activity outweighs the marginal benefit, then
a. the activity should not be pursued at all. b. less of the activity should be undertaken. c. the net total benefit received from the activity is negative. d. people should expand their pursuit of the activity.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Along budget constraint AC, the opportunity cost of one hot dog
A. is 1/4 of a hamburger. B. is 1/2 of a hamburger. C. is 2 hamburgers. D. changes as you move down along the budget constraint.