If a firm successfully price discriminates, it increases i. consumer surplus. ii. deadweight loss. iii. economic profit
A) i only
B) ii only
C) iii only
D) i and iii
E) i and ii
C
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Given the budget line in the figure above, the combination of chips that is NOT affordable is
A) a. B) b. C) c. D) d.
If a college wanted to increase its revenues from tuition payments, should it increase the tuition of day and evening students alike?
What will be an ideal response?
Refer to the information provided in Figure 13.1 below to answer the question that follows.
Figure 13.1Refer to Figure 13.1. The demand curve facing an electric company is most likely represented by
A. Panel A. B. Panel B. C. Panel C. D. Panel D.
A town wants to build a new bridge. Construction firms will submit sealed bids
The town will award the contract to the firm that submits the lowest bid and will pay the firm the amount of the second lowest bid (that is, the town will conduct a second-price procurement auction). So, for example, if Firm A bids $8 million, Firm B bids $9 million, and Firm C bids $10 million then the city will award the contract to Firm A (it submitted the lowest bid) and pay Firm A $9 million (the amount of the second lowest bid). Suppose your firm is willing to build the bridge for a minimum of $9 million. a. Show that bidding $9 million is a better strategy than bidding some amount below $9 million— say, $7 million. b. Show that bidding $9 million is a better strategy than bidding some amount above $9 million—say, $11 million.