If the graph shown represents Stella's budget constraint, and hairbands cost $4, what must Stella's income to spend on these two items be?
A. $48
B. $16
C. $32
D. Cannot answer this question without more information.
Answer: C
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Which of the following are necessary conditions for successful price discrimination?
a. zero transactions costs b. a perfectly competitive market structure c. an imperfectly competitive market structure d. at least two different markets with different price elasticities of demand e. at least two different markets with different price elasticities of supply A) a, b, and d only B) c and d only C) a, c, d, and e only D) a and c only
Robert Iwasaki lives next door to a toxic waste landfill. Katie Cooley lives five miles downstream from a steel plant that dumps waste into Mill Creek. Which person is more likely to press public officials for a cleaner environment?
a. Katie b. Robert c. neither d. both equally e. Economics cannot answer this question
The CPI is based on an:
A. average of the goods and services purchased by "urban consumers." B. average of the goods and services purchased by "rural consumers." C. average of the two baskets of goods and services purchased both by "urban" and by "rural" consumers. D. aggregated average meant to reflect the statistical average consumption.
A monopolist produces
a. more than the socially efficient quantity of output but at a higher price than in a competitive market. b. less than the socially efficient quantity of output but at a higher price than in a competitive market. c. the socially efficient quantity of output but at a higher price than in a competitive market. d. possibly more or possibly less than the socially efficient quantity of output, but definitely at a higher price than in a competitive market.