At a fast food restaurant, a large drink is twice as big as a small drink, but the restaurant charges 79¢ for the small drink and only 99¢ for the large drink. This situation is probably not a case of price discrimination because
a. the restaurant cannot easily prevent resale.
b. people who buy large drinks order more food than people who buy small drinks.
c. the cost of serving a large drink is not twice the cost of serving a small drink.
d. the fast food restaurant has no monopoly power.
c. the cost of serving a large drink is not twice the cost of serving a small drink.
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From an economist's perspective, why are public restrooms often dirtier than restrooms in your home?
A. Restrooms in your house are easier to clean. B. Property rights give you an incentive to clean your restrooms. C. There are incentives like a salary for janitors to clean the public restrooms. D. More people use the public restrooms.
If, for a particular short-run production, we observe that marginal product is decreasing we can conclude that average product is decreasing as well
Indicate whether the statement is true or false
Economic models can help us understand reality only when they include all details of the economy
a. True b. False Indicate whether the statement is true or false
The effect of a rise in peoples' incomes on equilibrium price and quantity of Florida orange juice is to
a. increase equilibrium price and quantity b. decrease equilibrium price and quantity c. increase equilibrium price and decrease equilibrium quantity d. increase equilibrium quantity and decrease equilibrium price e. decrease equilibrium price and increase equilibrium