If a good sells for $10 domestically and the same good sells for $7 abroad, then this firm is engaging in
A) marginal cost selling.
B) price discrimination.
C) price differentiation.
D) dumping.
Answer: D
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In a marketplace, prices:
A) act as a measure of value, and do not affect the allocation of resources. B) act as incentives that allow for the efficient allocation of resources. C) are determined by politicians and regulators. D) are determined through auctions.
A monopolistic competitor shuts down production in the short run if ________
A) marginal revenue equals marginal cost B) marginal cost equals average cost C) total revenues do not cover variable costs D) total revenues do not cover fixed costs
Which of the following statements is NOT compatible with explanations for why peak-load pricing is more profitable than charging a single price?
A) Consumer willingness to pay for the product varies a lot across different time periods. B) Marginal cost of production is much higher under peak demand. C) Marginal revenue changes a lot across different time periods. D) Marginal revenue must be the same across different time periods.
Commentators on the presidential election between Bush and Gore in 2000 believe that the presence of Nader, a third party candidate:
A. drew votes away from Bush and caused him to win the election. B. drew votes away from Bush and caused him to lose the election. C. drew votes away from Gore and caused him to lose the election. D. pushed more people to vote for Bush than otherwise would have, causing him to win the election.