Agri-Tech supplies a patented sweetener to various food processors. It has noticed that the value of the sweetener varies dramatically from one buyer to another, depending on the end-use demand. But its experiments with charging higher prices to some buyers have failed because:
A. outsourcing is compromised by contracting costs.
B. of market arbitrage.
C. the cost of production is always the same.
D. price discrimination is illegal.
Answer: B
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Suppose you plan to hold a stock for one year. You expect that, in one year, it will sell for $30 and pay a dividend of $3 per share. If your required return on equity is 10%, what is the most you should be willing to pay for the share today?
A) $3.30 B) $23 C) $30 D) $33
Deadweight loss measures the decrease in total surplus that results from a tariff or quota
a. True b. False Indicate whether the statement is true or false
Which of the following activities is NOT included in the production process?
A) determining the value of the goods B) making the goods C) packaging the goods D) transporting the goods
At a product's equilibrium price
A) anyone who needs the product will be able to buy the product, regardless of ability to pay. B) the federal government will provide the product to anyone who cannot afford it. C) not all sellers who are willing to accept the price will find buyers for their products. D) any buyer who is willing and able to pay the price will find a seller for the product.