Explain using welfare measures whether consumers prefer a single price monopoly or a perfect-price-discriminating monopoly
What will be an ideal response?
Consumers prefer a single price monopoly because they gain some consumer surplus. No consumer surplus exists with a perfect-price-discriminating monopoly.
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Fill in the blank: When a chooser asks herself "Is it worth it?," she is trying to evaluate the ________ of a particular project or plan of action
A) technical efficiency B) objective efficiency C) economic efficiency D) engineering efficiency
Promoters for the Rolling Stones were clearly "short selling" when
A) they distributed their latest CD to radio stations free of charge. B) they sold their latest CD to retailers at wholesale prices. C) they sold the world-tour concert tickets weeks in advance. D) they promoted the band without Bill Wyman, the original bass player.
Which of the following is an example of customer discrimination?
a. A foreign government prevents women from legally working as teachers. b. White theater goers prefer to watch movies with white stars rather than black stars. c. Customers prefer more experienced lawyers over less experienced ones. d. All of the above are correct.
Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Suppose residents of each island often play prisoner's dilemma games, always matched with a person from the same island, but not a person who they know or will play with again. If the same number of games is played on each island, you would expect:
A. players on both islands to quickly converge to playing their dominant strategies. B. the residents of Altruism to have higher average payoffs than the residents of Avarice. C. players on both islands to quickly converge to playing their dominated strategies. D. the residents of Avarice to have higher average payoffs than the residents of Altruism.