Historically, price discrimination was considered illegal in all instances. More recently, antitrust authorities have discovered that
A) price discrimination can increase the coverage of a market thereby increasing welfare.
B) price discrimination limits the coverage of a market thereby increasing welfare.
C) price discrimination limits the coverage of a market thereby decreasing welfare.
D) price discrimination can increase the coverage of a market thereby decreasing welfare.
A
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Refer to Scenario 12.1. What will be the price in the long run if the industry is a Cournot duopoly?
A) $400 B) $600 C) $800 D) $900 E) Competition will drive the price to zero.
A change in flour prices shifts the supply curve for bread
Indicate whether the statement is true or false
If Anh's elasticity of labor supply is 1.5 and she increases her supply of labor by 5 percent, then the wage rate must have
A. Increased by 3.3 percent. B. Increased by 3.0 percent. C. Decreased by 7.5 percent. D. Increased by 7.5 percent.
Toby tells you that he prefers hamburgers to hot dogs, hot dogs to tacos, and hamburgers to tacos. This violates what assumption made when analyzing consumer preferences?
A. that there is a diminishing marginal rate of substitution B. that more is better C. that consumers are rational D. This does not violate any assumptions relating to consumer preference.