Which of the following is not a necessary condition for effective price discrimination?
A. The seller must be able to separate buyers based on their elasticities.
B. The seller must not be a price taker.
C. Consumers must not be able to resell the products to other consumers.
D. Consumers must tell the seller how much they are willing to pay for the product.
Answer: D
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Marginal profit is the additional profit that accrues to the firm when the output rises by one unit.
Answer the following statement true (T) or false (F)
Protecting endangered species are likely to be
A) a private cost. B) a public cost. C) both private and public costs. D) neither a private nor public cost.
Which of the following causes stagflation?
A. Wage increases equal productivity increases, thereby setting off inflation. B. A leftward shift in the aggregate demand curve. C. Workers push costs upward and thereby initiate inflation. D. A leftward shift in the aggregate supply curve.
Inspired by the beautiful private tennis courts of some of its residents, the town of Lakeland built a pristine tennis park with five courts. Within three years the nets had been torn down, trash was piled everywhere, and graffiti was written on the courts. This story demonstrates the concept of the ______.
a. lemon problem b. tragedy of the commons c. moral hazard d. adverse selection