First-degree price discrimination:
A. results in the firm extracting all surplus from consumers.
B. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased.
C. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers.
D. None of the answers are correct.
Answer: C
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Total income in a country in 2012 is $780 billion. Total expenditure in the country
A) cannot be determined. B) is greater than $780 billion. C) is $780 billion. D) is less than $780 billion. E) is either less than or equal to $780 billion.
After a corporation issues stock, the stock
a. cannot be resold. b. can be resold only if the corporation wants to buy it back. c. can be resold on exchanges; the resale will raise additional funds for the corporation. d. None of the above are correct.
Investment spending will increase when
What will be an ideal response?
Refer to the following graph.
A price ceiling would be binding, resulting in a market shortage if it is set at:
A. either $3.00 or $1.50. B. $2.25. C. $3.00. D. $1.50.