Price differentiation is a situation in which
A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers.
B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers.
C) consumers' comparison-shop.
D) the demand curve is vertical.
A
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The new growth theory asserts that profits are
A) temporary, because the discoveries that lead to profits are eventually used by all. B) an illusion, since costs are never fully covered. C) permanent, because physical activities can be replicated. D) not an essential component determining whether the economy grows or not. E) permanent, because they are derived from discoveries.
Which of the following is a liability of the Fed?
A) U.S. government securities B) currency in circulation C) discount loans to banks D) checkable deposits in commercial banks
Graphically show a firm earning a profit; shade the appropriate profit rectangle. Explain how the profit formula represented by the rectangle is analogous to TR ? TC.
What will be an ideal response?
When a firm's long-run average total costs do not vary as output increases, the firm exhibits
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. an efficient use of resources.