Suppose that a price-discriminating monopolist divides its market into two segments. In each market segment, price is determined by finding the level of output where that market's
a. average revenue equals average total cost
b. average revenue equals average variable cost
c. marginal revenue equals average total cost
d. marginal revenue equals marginal cost
e. marginal cost equals average total cost
D
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If the price of almonds changed as a result of a change in the supply of almonds, is the demand for almonds elastic or inelastic? Explain your an-swer
What will be an ideal response?
If nominal wages increase at the same rate as inflation, then the aggregate supply curve will be a horizontal line
a. True b. False Indicate whether the statement is true or false
Under the expectations hypothesis of the term structure of interest rates, explain the impact of a U.S. Treasury decision to phase out the 30-year bond and to only focus on 3-month, 1-year, 5-year and 10-year bonds?
What will be an ideal response?
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the buyer's surplus from this transaction was:
A. $20 B. $195 C. $215 D. $10