A monopolist that practices perfect price discrimination
a. creates no deadweight loss.
b. charges one group of buyers a higher price than another group, such as offering a student discount.
c. charges a higher price but produces the same monopoly level of output as when a single price is charged.
d. charges some customers a price below marginal cost because costs are covered by the high-priced buyers.
a
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If the expected earnings of an investment project exceed all expenses except interest payments,
A) business firms will not undertake the project. B) business firms will undertake the project and raise prices later. C) business firms will not undertake the project but will borrow the funds. D) consumers will get lower prices.
The total revenue curve for a perfectly competitive firm
a. is a vertical line intersecting the horizontal axis b. is a horizontal line intersecting the vertical axis c. starts part way up the vertical axis, then slopes upward in a backwards-S curve d. is a straight line starting from the origin and sloping upward e. starts at the origin, sloping upward at first and then sloping downward
The News Wire article in the text titled "Economy Sharpest decline in 26 years" "Economy Contracts in 3rd Quarter" discusses the reduction in output for the U.S. economy. Which type of unemployment is most likely in this situation?
A. Structural B. Frictional C. Cyclical D. Seasonal
(Consider This) In 1975, McDonald's introduced its Egg McMuffin breakfast sandwich, which remains popular and profitable today. This longevity illustrates the idea of:
A. opportunity cost. B. upsloping supply. C. consumer sovereignty. D. specialization.