One requirement for a firm pursuing a price-discrimination strategy is the ability to segment the market for its product. This means that
A) the firm must choose a marketing strategy that appeals to different segments of the economy.
B) the firm must be able to divide the market in a way that makes arbitrage impossible.
C) the firm must be willing to offer price discounts for senior citizens and children.
D) the firm must set different prices for different regions where the product is sold.
B
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John's utility from an additional dollar increases more when he has $1,000 than when he has $10,000. From this, we can conclude that John
A) is risk averse. B) is risk loving. C) is risk neutral. D) has a negative marginal utility of wealth.
In a Betrand price-setting duopoly model, the equilibrium output:
a. will be equal to the monopoly output. b. will be equal to the competitive market output. c. will lie between the monopoly and the competitive market output. d. will be higher than the monopoly output.
Automatic stabilizers
A. Are zero at full employment. B. Help to moderate the extremes of the business cycle. C. Cause spending to decrease during a recession. D. Are included in discretionary fiscal spending.
The variable cost of producing a college textbook is usually around ________ of its price.
A. 20% B. 50% C. 80% D. 40%