What is the equilibrium condition for price discriminating monopoly firm? Give some examples for price discrimination.
What will be an ideal response?
The equilibrium condition is:MC = MRA = MRB = MRC
Examples include: (a) movie theaters charging a lower price for children and senior citizens than for other viewers, (b) fast food restaurants offering discount to students, (c) and theme parks charging lower admission prices to in-state residents
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Which of the following events would most likely be considered a macroeconomic shock?
A) A drought destroys 25% of the strawberry crop in California. B) Mismanagement results in a federal takeover of the largest credit union in the United States. C) OPEC unexpectedly announces a 40% reduction in oil production. D) The Federal Reserve decides to increase the discount rate by 0.25% for the third time in 12 months.
The difference between black market and gray market activities is:
A. while neither are included in GDP, black market items are illegal and gray market items are not. B. while neither are include in GDP, gray market items are illegal and black market items are not. C. black market items are very rare and difficult to find, and gray market items are more commonplace, like babysitting. D. black market items are typically expensive items, and gray market items are not.
In the unemployment rate, part-time workers are: a. not included in the labor force
b. included in the labor force, but counted as unemployed. c. treated the same way as discouraged workers. d. included in the labor force and counted as employed.
Suppose the Federal Reserve lowers the target on the interest rate in the Federal Funds market. The Federal Reserve will _____ the money supply and aggregate demand will _____
Fill in the blank(s) with correct word