A firm that practices multimarket price discrimination will set the lower price in the market that has the most elastic demand
Indicate whether the statement is true or false
True . The firm will equate marginal revenue across markets. Since MR = p(1 + 1/elasticity), markets with greater elasticity require lower prices.
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Robert, as a baker has to work long hours and doesn't get much time with his family. Robert's boss, in order to keep Robert working at the bakery would soon have to offer him a
a. positive compensating differential b. negative compensating differential c. nothing can make Robert stay d. none of the above
Drug companies are willing to spend millions of dollars on developing new drugs because
A.) their research will drive their competitors out of business. B.) they can patent the new drug and have a monopoly on its production and sale. C.) they can raise the prices on older drugs whose patents have expired. D.)they can produce unlimited quantities of the new drug.
A rational consumer maximizes his or her:
A. wealth. B. total utility. C. marginal utility. D. profit.
Financial account transactions occur
A. when an U.S. citizen purchases stock in an U.S. corporation. B. because of cross-border flows of financial assets. C. when you move money from one U.S. bank to another U.S. bank. D. when an U.S. company purchases goods from a foreign company.