Third-degree price discrimination exists whenever:
a. the seller knows exactly how much each potential customer is willing to pay and will charge accordingly.
b. different prices are charged by blocks of services.
c. the seller can separate markets by geography, income, age, etc., and charge different prices to these different groups.
d. the seller will bargain with buyers in each of the markets to obtain the best possible price.
c
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The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads
As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently with A) the capture theory of regulation. B) the public interest theory of regulation. C) the share-the-gains, share-the-pains theory of regulation. D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.
All other things remaining the same, a large increase in the net number of Mexican immigrant workers in the United States from Mexico causes:
a. U.S. GNP to be greater than the U.S. GDP. b. U.S. GNP to be less than the U.S. GDP. c. U.S. gross private domestic investment to rise. d. U.S. GNP to be greater than the U.S. GDP because U.S. gross private domestic investment rises
Refer to the figure below. In the matrix above: 
A. neither Cory nor Jess has a dominant strategy. B. Cory has a dominant strategy, but Jess does not. C. both Cory and Jess have the same dominant strategy. D. Jess has a dominant strategy, but Cory does not.
Which of the following examples shows the most inelastic demand?
a. When the price of printers increases from $800 to $1,000 per printer, sales decreases by 20 percent. b. When the price of fedoras increases from $90 to $100 per hat, sales decreases by half. c. When the price of shoes decreases from $60 to $50 per pair, sales increases 5 percent. d. When the price of crackers decreases from $3 to $2 per box, sales double.