When a hotel charges a much higher price for their luxury suites than their deluxe rooms, is this price discrimination?
A. No. These are two different goods/services.
B. Yes., as long as the price per square foot is the same.
C. Yes, as long as they are booked online.
D. Yes, as long as they offer both rooms to the same customer.
Answer: A
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If a seller's reservation value for a good is $10 and the price at which the good is sold is $15, his producer surplus is:
A) $25. B) $150. C) $1.5. D) $5.
The Sherman Act of 1890:
A. prohibited selling products at "unreasonably low prices" with the intent of reducing competition. B. outlawed tying contracts. C. outlawed stock-purchase mergers that would substantially reduce competition. D. made it illegal to monopolize a market.
Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:
A. lenders want to be compensated for being unable to get their money back quickly. B. the opportunity cost increases over time. C. there's more uncertainty about potential future investment opportunities. D. All of these are true.
In 2017, an income of $125,000 would, roughly, make a family
A. richer than 40 percent of U.S. households but poorer than 35 percent. B. richer than 50 percent of U.S. households but poorer than 25 percent. C. richer than 85 percent of U.S. households but poorer than 8 percent. D. richer than 95 percent of U.S. households but poorer than 1 percent.