A cheese-by-mail club that charges an annual membership fee and an additional fee per cheese shipment utilizes
A) perfect price discrimination
B) third-degree price discrimination.
C) two-part pricing.
D) uniform pricing.
C
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If ethanol production is expected to increase the price of corn, U.S. farmers will likely
A) shift the supply of corn to the left. B) shift the supply of corn to the right. C) reduce the production of corn by sliding down the corn supply curve, all else equal. D) increase the production of corn by sliding up the corn supply curve, all else equal.
Which of the following is likely to result in a lower equilibrium price? a. An increase in both demand and supply
b. A decrease in both demand and supply. c. An increase in demand and a decrease in supply. d. A decrease in demand and an increase in supply.
An example of a variable cost to the firm is the
a. monthly rent it pays based on a multiple-year lease b. cost of shipping the goods it produces c. property taxes it pays d. interest payments on a bank loan e. entrepreneur's opportunity cost
Information problems create inefficient outcomes in:
A. the private sector but not the public sector. B. the public sector but not the private sector. C. neither the private nor the public sector. D. both the private and the public sectors.