Why do economists show little interest in how the benefits from an exchange are shared between the two parties?
To economists, what matters most is that the exchange between two individuals takes place whenever an opportunity for the same arises. The fact that exchange benefits both parties is a positive statement. However, normative economics has no way to determine which of the two individuals deserves a higher share of the benefit resulting from the exchange.
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Consider the following pricing strategies:
a. perfect price discrimination b. charging different prices to different groups of customers c. optimal two-part tariff d. single-price monopoly pricing Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing? A) a, b, c, and d B) a, b, and c only C) a and b only D) a and c only
What is a depreciation to one country must be an appreciation to the other.
Answer the following statement true (T) or false (F)
Refer to Table 3-25. Miguel has an absolute advantage in the production of
a. both goods and a comparative advantage in the production of mixers.
b. both goods and a comparative advantage in the production of toasters.
c. neither good and a comparative advantage in the production of mixers.
d. neither good and a comparative advantage in the production of toasters.
The term "rent seeking" best describes a situation in which:
A. individuals expend effort searching for a good price on an apartment. B. consumers compete for a limited quantity of the good. C. firms use resources to secure or preserve a monopoly in providing a good or service. D. None of these is a good description of rent-seeking behavior.