Why do firms practice price discrimination?
A firm will increase profit if it is able to charge each customer the highest price they are willing and able to
pay. When a firm practices price discrimination, it segments its market in order to capture as much of the
difference between the price that each customer is willing to pay and the price that they actually pay.
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The most liquid asset is
A) a house. B) stocks of a highly profitable company. C) gold. D) money.
If a firm is producing at its minimum efficient scale, increasing its output slightly will lead to diseconomies of scale
a. True b. False
Variability in prices for grains tends to be _____ (less than, greater than) variability in price for beef and hogs.
a. Less than b. Greater than
Inflation will
A) increase aggregate demand. B) increase the quantity of real GDP demanded. C) decrease aggregate demand. D) decrease the quantity of real GDP demanded.