If a firm faces a flat demand curve,
A) it cannot engage in price discrimination.
B) it can only engage in two-part tariffs.
C) it can only engage in perfect price discrimination.
D) None of the above.
A
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The monopolist faces a downward sloping demand curve, and maximizing profits requires the monopolist to
A) accept the market price for its product. B) will produce where the demand curve is inelastic. C) search for the price consistent with producing to the point at which marginal revenue equals marginal cost. D) search for the highest possible price consistent with maximizing its revenues, irrespective of its explicit and implicit opportunity costs.
If wage rates are lower in Mexico than in Germany, labor costs per unit of output can still be higher in Mexico
a. True b. False
Assume the M2 multiplier is 3 and the reserve ratio is 10%. If the central bank buys $100 million of government securities from banks, the banking system's reserves will:
a. Rise by $10 million. b. Rise by $100 million. c. Fall by $100 million. d. Fall by $10 million. e. Not change.
Intermediate inputs are
A) goods used for household consumption only. B) goods used for government consumption only. C) goods purchased by one business from another to use in production. D) raw materials used in the production process.