A firm that uses price discrimination to enhance its net revenues will
a. expand output as long as price exceeds average total costs.
b. expand output as long as average total costs are declining.
c. charge a higher price to consumers with a more elastic demand for the firm's product.
d. charge a lower price to consumers with a more elastic demand for the firm's product.
D
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Use the following information to answer the next question.SecurityAmount (in billions)Treasury bills$220Corporate bonds140Treasury notes80Corporate stock200U.S. savings bonds60Treasury bonds100The public debt for the economy is
A. $540 billion. B. $460 billion. C. $580 billion. D. $400 billion.
A textbook publisher is in monopolistic competition. If the firm spends nothing on advertising, it can sell no books at $100 a book, but for each $10 cut in price, the quantity of books it can sell increases by 20 books a day
The firm's total fixed cost is $2,400 a day. Its average variable cost and marginal cost is a constant $20 per book. If the firm spends $1,200 a day on advertising, it can increase the quantity of books sold at each price by 50 percent. Compared to the situation if it does not advertise, if the firm advertises, its economic profit A) increases by $400. B) decreases by $400. C) doubles. D) is the same as with no advertising.
Production that generates positive externalities typically produces _______ than the socially optimum and this is because benefits to ________ are not taken into account by the market
a. more; free riders b. less; free riders c. less; government d. more; government e. more; antipolluters
Which of the following is an example of product differentiation based on the location from which a product is sold?
a. An electronic company advertising its new range of slim smartphones b. A cellphone service provider offering free access to a particular website c. A car mechanic opening his new workshop near a busy highway d. An electronic company offering a warranty of 5 years for its air conditioners