A firm carries out price discrimination when it charges
a. a lower price to consumers whose demand is more elastic.
b. the same price to all of their consumers.
c. a higher price to consumers whose demand is more elastic.
d. a higher price when their marginal cost is lower.
a. a lower price to consumers whose demand is more elastic.
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If a producer wants a monopoly with a legal barrier to entry, how can this be done?
i. The producer can spend funds lobbying to attain passage of the legal barrier to entry. ii. The producer can purchase an existing monopoly. iii. The producer can make rent seeking expenditures. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) None of the above are ways to acquire a monopoly with a legal barrier to entry.
Which of the following is correct when a price is set below a market's equilibrium price?
a. quantity demanded exceeds quantity supplied at the set price b. quantity demanded is less than quantity supplied at the set price c. quantity demanded is equal to quantity supplied at the set price d. at the set price there is a surplus e. the market price is less than the ceiling price
The annual interest payment divided by the bond's price is the
A. Current yield. B. Default value. C. Market price. D. Risk yield.
Suppose the interest rate is 5% and that you are to receive three annual payments of $10,000, with the first payment one year from now, the second payment two years from now, and the third payment three years from now. What is the present value of this stream of payments?