When two or more divisions mark up prices in excess of marginal cost:
A. double marginalization occurs.
B. second-degree price discrimination occurs.
C. two-part pricing occurs.
D. None of the answers are correct.
Answer: A
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Based on the production and revenue data in the above table, what is the price of the product?
A) $100 B) $10 C) $1 D) More information is needed to determine the price of the product.
Oligopolies exist and do not attract new rivals because
A) of barriers to entry. B) there can be no product differentiation. C) of competition. D) the firms keep profits and prices so low that no rivals are attracted.
The higher the reserve requirement,
a. the more the money supply can expand. b. the more interest the bank will earn on its reserve account. c. the less the money supply can expand. d. both the more the money supply can expand and the more interest the bank will earn on its reserve account.
Define allocative efficiency. Explain the significance of this concept in economics?
What will be an ideal response?