Under perfect price discrimination
A. every buyer in the market would lose his or her entire consumer surplus.
B. every buyer would have to pay more than the original market price before price discrimination.
C. all buyers would maximize their consumer surpluses.
D. the rich buyers would benefit and the poor buyers would be hurt.
A. every buyer in the market would lose his or her entire consumer surplus.
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Investment in both physical and human capital enhances economic growth because it:
a. increases consumption during the current period. b. makes it possible for individuals to produce more goods and services per hour worked. c. encourages firms to expand output by employing more low-productivity workers. d. encourages workers to unionize and, thereby, fight for higher wages.
The information to be gathered for a decision depends on which of the following?
a. The current market conditions and on the expected costs and benefits of acquiring the information. b. The model that underlies a decision and on the expected costs and benefits of acquiring the information. c. The cost of the information and the current market conditions. d. The model that underlies a decision and the amount of information that is internally available.
In the case where a firm gains an advantage from producing more than one product, it is experiencing
A) economies of scale. B) market economies. C) economies of scope. D) increasing returns to scale.
In the two-thirds game, in which you choose a number between 1 and 100 that is two-thirds of the average chosen by the group, the rollback strategy is to:
A. choose zero. B. choose a number randomly. C. be the first person to choose a number. D. be the last person to choose a number.