If a price-discriminating monopolist sells the same product in two markets but charges a lower price in market X and a higher price in market Y, the pricing difference indicates that demand is:
A. the same in both markets X and Y.
B. less elastic in market X than market Y.
C. more elastic in market Y than market X.
D. more elastic in market X than market Y.
Answer: D
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Which formula can be used for approximating the real interest rate when the inflation rate is low?
a. Nominal Interest Rate + Expected Inflation. b. Nominal Interest Rate + Expected Deflation. c. Nominal Interest Rate – Expected Inflation. d. None of the above is suitable.
If a graph has a line that shows the quantity of flat-screen televisions sold in the last five years, it is known as
A) a pie chart. B) a time-series graph. C) a demand curve for outsourcing. D) a supply curve of outsourcing.
Allocative efficiency requires that
a. MC equals ATC. b. MC equals P. c. AR equals AFC. d. MC equals MR.
The opportunity cost of producing in low-income, developing countries rises over the product cycle, according to theory
Indicate whether the statement is true or false