Related to the Economics in Practice on p. 626: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, its best strategy would be to
A. adopt other countries' policies until it reaches the frontier of the rest of the world.
B. support its own innovative efforts until it reaches the frontier of the rest of the world.
C. first adopt other countries' policies, and as the country approaches the frontier, shift to supporting its own innovative efforts.
D. first support its own innovative efforts, and as the country approaches the frontier, shift to adopting other countries' policies.
Answer: C
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Using the figure above, suppose a subsidy of $15,000 per student is provided to private colleges. Then, the market equilibrium occurs at a tuition of ________ a year and ________ million students
A) $10,000; 15 B) $25,000; 15 C) $15,000; 15 D) $15,000; 7.5 E) $20,000; 20
Under perfect competition, the per unit revenue of a firm is equal to its marginal revenue
a. True b. False Indicate whether the statement is true or false
Which of the following statements about price discrimination is correct?
a. Price discrimination is always more profitable than charging a single price. b. A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product. c. To be successful, a price discriminator must assure that items can be resold between high- and low-price groups. d. To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.
A glass company making windows for houses also makes windows for other things (cars, boats, stores, etc.). We would expect its supply curve for house windows to be:
A. Dependent on the demand for boat and plane windows B. No different than that of firms which only make those windows C. Relatively more elastic than those of firms which only make house windows D. Relatively more inelastic than those of firms which only make house windows