Relative to a monopoly charging a single price to all consumers, perfect price discrimination ________ producer surplus and ________ consumer surplus.
A. decreases; decreases
B. decreases; increases.
C. increases; decreases
D. increases; increases
Answer: C
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For many goods, the price elasticity of demand increases over time because
A) people's incomes tend to increase over time. B) inflation increases all prices and incomes over time. C) the ability to find substitutes for a good whose price has risen increases over time. D) None of the above answers is correct.
From the neoclassical view, physical capital per person refers to the amount and kind of:
a. machinery and equipment available to help people get work done. b. processes and money available to help people get work done. c. equipment and labor available to help people get work done. d. labor and equipment available to help people get work done.
When a person does NOT have to pay the full costs for using a scarce resource, then
A. the social costs of the resource are less than they would be if the "correct" amount of the resource were being used. B. the internal costs of using the resource are too high. C. more of the resource will be used. D. the use of the resource is not affected since society pays for the resource.
Refer to Table 2-5. What is Estonia's opportunity cost of producing one cell phone?
A) 0.2 board feet of lumber B) 5 board feet of lumber C) 8 board feet of lumber D) 32 board feet of lumber