If a monopolist had no production costs, it would produce the output where marginal revenue intersects the quantity axis. At this point, the price elasticity of demand would be:
A. 1.
B. zero.
C. perfectly inelastic.
D. perfectly elastic.
Answer: A
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South Korea, Indonesia, Malaysia, and Thailand all pegged their currencies to the dollar at one point in time
Because some of these currencies were overvalued at the pegged rate, speculators anticipated these countries would abandon the peg and speculators began selling those currencies. Explain how this speculation would affect the ability of a country to maintain a pegged exchange rate.
Examples of incentive pay include
a. allowing employees a certain number of personal days b. providing onsite parking for employees c. cleaning the worksite with weekly janitorial service d. prizes to the employee team to win a project goal tournament
Which of the following statements about price discrimination is correct?
a. A price discriminating firm will want to charge a higher price to the consumer group with the more inelastic demand. b. A firm will always be able to increase its profit by price discriminating rather than charging the same price to all customers. c. Price discrimination will be most effective when buyers can easily resell the product amongst themselves. d. Each consumer will pay a higher price when a firm is a price discriminator than would be the case if all customers were charged the same price.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.