A firm that practices multimarket price discrimination will set the lower price in the market that has the most elastic demand
What will be an ideal response?
True. The firm will equate marginal revenue across markets. Since MR = p(1 + 1/elasticity), markets with greater elasticity require lower prices.
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Refer to Table 20.1. The income tax in Oceania is
A) progressive. B) regressive. C) proportional. D) a flat tax.
An example of business fixed investment spending is
A) a purchase of a home by a household. B) a purchase of a bond by General Electric Corporation. C) a purchase of a computer by an accounting firm. D) $200 million of unsold cars at a car dealership.
If there are economies of scale in the transactions demand for money, as income increases, money demand
A) increases proportionately. B) increases less than proportionately. C) increases more than proportionately. D) does not change.
The direct relationship between changes in price and changes in quantity supplied is
A. a change in supply. B. the law of supply. C. shown by a shift in the supply curve. D. the law of relative production.