Which of the following is not a necessary condition for price discrimination?
a. The firm must be a price maker
b. The firm must be able to distinguish between customers.
c. The firm must be able to prevent resale of a product between customers.
d. The firm must be able to produce homogeneous products.
e. The firm must have a downward-sloping demand curve.
d
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The traditional Keynesian approach concludes that an increase in government spending
A) generates a greater increase in investment spending. B) generates a greater increase in total spending because consumption spending increases as incomes increase. C) has no effect on total spending because consumers increase saving by an equal amount. D) generates an equal increase in total spending because government spending makes up part of total spending.
Sammy has a drone that he values at $1,500. Frank values the same drone at $1,000. The government offers a subsidy of $800 to the buyers of drones, and Sammy and Frank agree on a price of $1,600
Producer surplus is ________ and consumer surplus is ________. A) $100; $200 B) $700; $600 C) $200; $1,400 D) $300; $100
In the short run, a firm that is operating at a loss has two options. These options are
A) to go out of business or declare bankruptcy. B) to reduce output or reduce its variable costs. C) to shut down temporarily or continue to produce. D) to adopt new technology or change the size of its physical plant.
When hiring additional workers, a firm operating in a perfectly competitive labor market will
A) have to offer higher wages to hire additional workers, but the old workers do not get the higher wage. B) have to offer higher wages to hire additional workers, and the old workers will also receive the new, higher wage. C) be able to hire additional workers without offering higher wages. D) be able to hire additional workers at lower wages because the new workers have been unemployed.