A price-discriminating monopoly charges
A) the same price to every buyer for the same product.
B) a different price to different types of buyers for the same product, even though there are no differences in costs.
C) a different price to different buyers, because the costs are different.
D) different prices to buyers for different products.
E) each customer a price that equals the marginal cost of serving that customer.
B
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The most liquid asset is
A) a house. B) stocks of a highly profitable company. C) gold. D) money.
Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a
perfectly competitive market in that in both markets, firms A) produce at the minimum point of their average total cost curves. B) produce where price equals marginal revenue. C) break even. D) produce where price equals marginal cost.
Each of the following, except one, is a condition necessary for a private market solution to an externality problem. Which is the exception?
a. Legal rights must be clearly established. b. Legal rights must be easily transferred. c. The number of people involved must be very small. d. The amount of money involved must be very small. e. Side payments must be arranged without cost.
The rapid growth rates of less developed countries (LDCs) after adopting institutions and policies more favorable to economic freedom and voluntary exchange is not surprising when one considers that
a. LDCs can emulate and borrow successful practices and technologies from other, more developed nations. b. foreign aid payments to a less developed country are nearly always expanded rapidly when the country begins to increase its income level. c. the governments of LDCs play a larger role in economic planning, when economic freedom rises. d. economic theory indicates that improvements in institutions normally result from economic growth, rather than growth stemming from better institutions.