For price discrimination to exist, all of the following are necessary EXCEPT
A) a downward sloping demand curve.
B) an identifiable group of buyers with different elasticities of demand.
C) an upward sloping marginal cost curve.
D) there can be no resale of the product.
Answer: C
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An increase in the real interest rate ________ the quantity of loanable funds supplied and ________ the quantity of loanable funds demanded
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Assume that in the market for plasma TVs there is an increase in supply. The result will be:
A) an increase in equilibrium price and quantity. B) a decrease in equilibrium price and quantity. C) an increase in equilibrium quantity and uncertain effect on equilibrium price. D) a decrease in equilibrium price and increase in equilibrium quantity.
The idea that similar foreign and domestic goods, or baskets of goods, should have the same price when priced in terms of the same currency is called
A. equity. B. efficiency. C. the tragedy of the commons. D. purchasing power parity.
Consider the purely competitive firm pictured below. At its short-run equilibrium point, the firm is earning:
A. Zero normal profits
B. Zero economic profits
C. Zero accounting profits
D. We can say nothing about this firm's profit or loss situation