For a firm to be able to engage in price discrimination, it must
A) face a downward sloping demand curve.
B) produce more than one product.
C) have customers of different levels of wealth and age.
D) have economies of scale.
Answer: A
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Macroeconomics is concerned with the behavior of all of the firms in a particular industry, while microeconomics focuses on a single firm in the same industry
Indicate whether the statement is true or false
A firm practicing group price discrimination across two countries sets MR = common MC and therefore
A) price will be the same in both countries. B) price will be twice MR. C) profit will be the same in both countries. D) price will likely be different in each country.
Autoregressive distributed lag models include
A) current and lagged values of the error term. B) lags of the dependent variable, and lagged values of additional predictor variables. C) current and lagged values of the residuals. D) lags and leads of the dependent variable.
In a mixed strategy situation, like the "heads or tails" game, the players can maximize their income by randomly choosing head or tail each with a probability of:
a. 0.25 b. 0.5 c. 0.75 d. 1.0