First degree price discrimination is efficient and therefore preferred by everyone to no price discrimination on the part of a monopolist.
Answer the following statement true (T) or false (F)
False
Rationale: It is indeed efficient, but consumers lose all surplus to the monopolist. So only the monopolist prefers it.
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The supply curve illustrates that firms:
A. decrease the quantity supplied of a good when input prices rise. B. increase the quantity supplied of a good when its price rises. C. decrease the supply of a good when its price rises. D. increase the supply of a good when its price rises.
Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/4 . To maximize total utility, she should
a. buy more pizzas and fewer blouses b. buy fewer pizzas and more blouses c. continue to buy the same quantities of pizza and blouses d. spend more time consuming pizza e. spend more time buying blouses
When the interest rate rises, bond values
A. rise. B. fall. C. will either increase or decrease depending on the type of bond. D. are unchanged because the interest rate paid on a bond is fixed.
Refer to the information provided in Figure 33.5 below to answer the question(s) that follow.
Figure 33.5Refer to Figure 33.5. The domestic price of oil is $130 per barrel, and the world price of oil is $120 per barrel. If the domestic government imposes a tariff of $10 per barrel, it will
A. export 7 million barrels. B. export 5 million barrels. C. import zero barrels. D. import 5 million barrels.