When a firm practices perfect price discrimination,
a. The demand curve is very inelastic
b. The demand curve is the marginal revenue curve
c. The demand curve is very elastic
d. The marginal cost curve is the average cost curve
b
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The expenditure line in the aggregate expenditures diagram represents the
A. relationship between expenditure and output. B. equilibrium condition that Y = AE. C. equilibrium condition that Y = Y*. D. relationship between consumption and disposable income.
The figure above illustrates a linear demand curve. If the price falls from $8 to $6
A) total revenue increases. B) total revenue decreases. C) total revenue remains unchanged. D) the quantity demanded increases by less than 20 percent.
In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________
A) both inflation and output return to the original long-run equilibrium values B) inflation is permanently increased, while output returns to potential output C) output returns to potential output, while inflation may be higher or lower than its initial value D) inflation is permanently reduced, while output returns to potential output E) none of the above
This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic b. your bid was not the highest c. there were not many other bidders you had to beat out d. you shaded your bid a lot