Which of the following is considered a necessary condition for successful price discrimination?
A) A firm's customers must all have the same price elasticity of demand.
B) Firms are able to prevent resale among different groups of customers.
C) Firms must be able to determine each customer's maximum willingness to pay for the product in question.
D) Firms must operate in a perfectly competitive market.
B
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Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply
A. increases $100,000. B. increases $500,000. C. increases $600,000. D. decreases $500,000.
Which of the following increases the demand for a good?
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute
Union representatives negotiate with employers to establish wage rates and working conditions that ______.
a. ensure the firm is more profitable than its competitors b. put the needs of the employees ahead of profits c. are in sync with global rates of pay and performance d. balance the interests of the workers and the firm
The more the short-run output exceeds an economy's potential, _____
Fill in the blank(s) with the appropriate word(s).