Which is true of price discrimination?
A. Successful price discrimination will provide the firm with more profit than if it did not discriminate.
B. It exists when price differences depend critically on differences in the costs of production of serving different groups of buyers.
C. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly.
D. Successful price discrimination will provide the firm with lower total profits than if it did not discriminate.
Answer: A
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In a market where firms are successful in convincing their customers that their product is different from their competitors' product but otherwise have no barriers to entry would be best characterized by
A) monopolistic competition. B) a monopoly. C) perfect competition. D) an oligopoly market.
If disposable income were to rise from $4,000 to $5,000
A. induced consumption would fall. B. induced consumption would stay the same. C. induced consumption would rise. D. there is not enough information to determine whether induced consumption would rise, fall or remain the same.
Command-and-control legislation, as compared to incentive-based regulation:
a. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. b. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. c. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. d. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.
An important effect of fractional reserve banking is that: a. bankers' choices about how much to lend can affect the money supply
b. the commercial banking system has complete control over total reserves. c. bankers always turn every dollar of excess reserves into loans. d. a new bank deposit allows a bank to extend loans of the same amount to borrowers.