Arbitrage
a. Is the act of to buying low in one market and selling high in another market
b. Can force a seller to go back to uniform pricing
c. Can offset the benefits of direct price discrimination
d. All of the above
d
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A point outside a production possibilities curve reflects
a. efficiency b. specialization c. inefficiency d. unemployment e. an unattainable choice
The likelihood that individuals who seek to borrow money may use the funds for unworthy, high-risk projects is
A. asymmetric information B. adverse selection C. moral hazard D. financial intermediation
A change in the ________ leads to a change in demand that causes a ________.
A. price of other goods; movement along the demand curve B. price of the original product; shift of the demand curve and a movement along the new demand curve C. price of the original product; shift of the demand curve D. price of other goods; shift in the demand curve
Currently, a monopolist's MR = $10 and its MC = $5 and it serves 10 consumers. An 11th consumer walks in. Should the company provide service to the additional customer?
A. No, MR > MC, so it should not provide service to the additional customer. B. Yes, MR is equal to the number of customers, so it should provide service to the additional customer. C. No, MC is less than the number of customers, so it should not provide service to the additional customer. D. Yes, MR > MC, so it should provide service to the additional customer.