When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s)
a. economies of scale
b. economies of scope
c. diminishing marginal returns
d. marginal-cost pricing
b
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Third-degree price discrimination exists whenever:
a. the seller knows exactly how much each potential customer is willing to pay and will charge accordingly. b. different prices are charged by blocks of services. c. the seller can separate markets by geography, income, age, etc., and charge different prices to these different groups. d. the seller will bargain with buyers in each of the markets to obtain the best possible price.
What percentage of the 20,000 collective bargaining agreements negotiated each year are concluded without recourse to a strike?
A. 90 percent. B. 75 percent. C. 50 percent. D. 85 percent.
If an agricultural market is perfectly competitive, then
A. Each firm's demand curve is perfectly inelastic. B. A farmer practices price discrimination. C. The market demand curve is perfectly elastic. D. A farmer is a price taker.
Which of the following statements about indexed bonds is correct?
A) They were relatively recently introduced in the United States. B) They exist in England. C) They have a nominal interest rate that rises when the inflation rate rises. D) all of the above E) none of the above