A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society
a. True
b. False
Indicate whether the statement is true or false
True
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Boeing and Airbus have entered into a cartel agreement that will enable them to boost their profits. What occurs if Boeing decides to cheat on the agreement?
i. Boeing lowers the price of its airplanes. ii. The total industry output increases. iii. The total profits in the airplane industry will decrease. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Kyle works for a perfectly competitive firm where he receives a wage rate of $15. From this, one can infer that:
A. Kyle's reservation wage is $15. B. Kyle's value of marginal product is at least $15. C. the price of the firm's output is at least $15. D. Kyle's marginal product is at least $15.
When countries trade with each other, does it result in a gain for everybody?
A. No. Producers of a good that is imported would be hurt. B. No. Consumers of a good that is imported would be hurt. C. No. Producers of a good that is exported would be hurt. D. Yes. All producers and consumers from both exporting and importing countries will gain.
The firm in a perfectly competitive industry is a
A) price taker. B) price maker. C) price seeker. D) price dealer.