Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3
A) economic surplus is maximized.
B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.
C) not enough consumers want to buy pecans.
D) the quantity supplied is less than the economically efficient quantity.
D
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Which of the following is NOT necessary for a firm to engage in price discrimination?
A) The firm must be able to identify different types of buyers. B) The firm must be able to separate buyers by preventing resales from one customer to another. C) The firm must produce output for different buyers at different costs. D) The firm must sell a product that cannot be resold.
Firms in long-run perfect competition produce at
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) no returns to scale.
Double markup problems arise when
a. upstream firms have no market power b. downstream firms have no market power c. upstream and downstream products are complementary in demand d. upstream and downstream firm's pricing decisions tend to increase the demand for the other product
Neutral policy with respect to choice architecture is:
A. not a clear concept across different choice scenarios. B. well established in all choice scenarios. C. the goal of all choice architects. D. generally regulated by state and federal government.