Racial discrimination and other forms of discrimination based on irrelevant factors are illegal. Can price discrimination be illegal as well?
What will be an ideal response?
In 1936, Congress passed the Robinson-Patman Act which outlawed price discrimination if it resulted in less competition. However, the language used in the act made it seem that all price discrimination that was not based on differences in cost was illegal. Courts render judgments regarding violations of acts of Congress based on how they interpret the language used in these acts. In recent years, the courts have interpreted the Robinson-Patman Act narrowly; that is, price discrimination as practiced by the airlines, colleges and universities, and other firms is not considered to be illegal.
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In the United States, the long-run average growth rate of velocity in recent decades has been
A) about 2 percent per year. B) about 1 percent per year. C) virtually zero. D) about -1 percent per year. E) about -2 percent per year.
In long-run monopolistic competition,
a. economic profit is zero b. P = MC = ATC c. P = ATC at the minimum point on the ATC d. normal profit is zero e. the demand curve is tangent to the MC curve
What is the effect on velocity if payments are made more often?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to payments.
Comparative advantage is
A. the ability to produce a good at a lower opportunity cost than other producers. B. the ability to produce more output of all goods than anyone else can. C. the ability to produce more output from given inputs than another producer can. D. the ability to produce all goods at lower costs than anyone else can.