Second-degree price discrimination:
a. is also known as block rate setting
b. is imperfect in the eyes of a monopolist
c. is regularly practiced by public utilities
d. is effective only in the case of services or products which are sold in easily metered units
e. all of the above
e
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When externalities are present, market prices do not reflect all the social costs or benefits of the activity
a. True b. False
If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve (SRAS) is:
a. vertical. b. positively sloped. c. negatively sloped. d. horizontal.
In a duopoly, one firm's low-price guarantee:
A. eliminates the other firm's incentive to undercut the first firm's price. B. encourages the other firm to cut its prices. C. guarantees that consumers will pay the lowest price possible. D. is ineffective because firms always have an incentive to break their agreements.
Potential GDP is the maximum amount of economic output an economy can sustain at any moment without
A. causing frictional unemployment. B. decreasing the inflation rate. C. increasing the inflation rate. D. raising unemployment levels.