A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm. Those who check in early are much more likely to use the hotel's pool
Explain why this price difference may not be price discrimination.
The marginal cost of providing a hotel stay to those who check in early may be greater than the marginal cost of providing a stay to those who check in after 5:00 pm. Those who check in early are more likely to use more towels, soap, shampoo, bathing caps, etc., than those who arrive after 5:00 pm. The difference in costs may explain the hotel price differences.
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Blanket standards on imports usually address issues affecting:
A. domestic consumers. B. domestic producers. C. foreign production practices. D. They can be used to address any of these.
Keynes once remarked that, in the long run, we're all dead. He was responding to the conventional wisdom of classical economics who argued that:
a. the supply curve should remain vertical in the long run. b. World War I was fought to free Britain from economic ruin. c. depression was only a short-run, temporary departure from full-employment equilibrium. d. funeral plots need to be determined by the market. e. market-based realities cause the estate tax to be too high.
The law of diminishing return does not apply to a firm in the long run because in this phase:
a. all the factors of production are fixed. b. there are no fixed factors of production. c. there are some fixed and some variable factors of production. d. the producer is required to produce a fixed level of output. e. the producer can change the level of output only by changing the variable factors, fixed factors remaining unchanged.
Over the long run, the U.S. economy:
a. has grown dramatically. b. has shown nominal growth. c. has remained more or less stagnant. d. has not produced enough capital goods.