In order to practice third degree price discrimination all of the following conditions must hold except that the firm
a. has monopoly power.
b. is able to exercise control over resales.
c. is willing to sell more to each customer at lower prices.
d. charges a lower price to groups with more elastic demand.
c. is willing to sell more to each customer at lower prices.
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In the long run, a firm in a monopolistically competitive industry produces where its marginal cost
A) is less than its average cost. B) equals its average cost. C) exceeds its average cost. D) equals its price.
Selling a good abroad below the price charged in the home market, or at a price below the cost of production is called
A) dumping. B) import substitution. C) a quota. D) a tariff.
If the dollar depreciates because of speculation or government policy, U.S
a. aggregate demand shifts left. U.S. aggregate demand also shifts left if other countries experience an increase in real GDP. b. aggregate demand shifts left. U.S. aggregate demand shifts right if other countries experience an increase in real GDP. c. aggregate demand shifts right. U.S. aggregate demand also shifts right if other countries experience a decrease in real GDP. d. aggregate demand shifts right. U.S. aggregate demand shifts left if other countries experience a decrease in real GDP.
The expenditure approach to measuring GDP is based on summing
A) wages, interest, rent, and profit. B) each industry's production. C) the total values of final goods, intermediate goods and services, used goods, and financial assets. D) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services. E) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services minus wages, interest, rent, and profit.