What condition must exist for a monopolist to effectively price discriminate?
A) The monopolist must face consumers with identical willingness to pay.
B) The monopolist must produce a good or service that can be resold.
C) The monopolist must produce a good that cannot be resold.
D) The monopolist must charge the highest price possible.
C
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Most studies using the compensating differential approach have estimated the value of a life to be between $3 million and $7 million
Indicate whether the statement is true or false
When the consumer is at his or her best affordable consumption point, it is the case that the marginal rate of substitution is
A) greater than the price ratio. B) equal to the price ratio. C) less than the price ratio. D) maximized.
Departures from interest parity
A) can be explained using theories of risk premium. B) cannot be explained using theories of risk premium. C) may or may not be able to be explained using theories of risk premium, more research is needed. D) are completely unrelated to risk premium. E) occur when risk premium is over calculated.
We expect firms with ________ to sell marketable pollution permits to firms with ________.
A. low abatement costs; high abatement costs B. high abatement costs; low abatement costs C. high price goods; low price goods D. high production capacity; low production capacity