The existence of any consumer surplus in the market suggests that all of the following practices are possible in the market except which one?
A) third-degree price discrimination
B) first-degree price discrimination
C) second-degree price discrimination
D) a single price is charged to all consumers
B) first-degree price discrimination
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An increase in the government's budget deficit ________ the real interest rate and ________ the equilibrium quantity of national saving.
A. decreases; increases B. increases; increases C. increases; decreases D. decreases; decreases
If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is
A) 5 percent. B) 10 percent. C) 50 percent. D) 100 percent.
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is producer surplus increased?
A. $3,200 B. $3,600 C. $5,400 D. $3,000
Foreign direct investment generally leads to technological advancements in poorer countries
a. True b. False Indicate whether the statement is true or false