Which of the following statements about price discrimination is correct?
a. Price discrimination is always more profitable than charging a single price.
b. A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product.
c. To be successful, a price discriminator must assure that items can be resold between high- and low-price groups.
d. To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.
D
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Okun's law states that for every 1-percentage-point increase in the cyclical unemployment rate, real GDP growth
A) must increase by 1 percentage point for the economy to keep from experiencing a recession. B) decreases by about 2 percentage points. C) declines for 1 year. D) increases by 1 percentage point.
Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7. What is the value of the consumer surplus enjoyed by her customers?
A) $39 B) $28 C) $11 D) $0
Suppose the economy's production function is Y = AK0.3N0.7. Suppose K = 200, N = 2000, and A = 1. Calculate the marginal products of labor and capital
What will be an ideal response?
Refer to Figure 14.2. A movement from point b to point c could be caused by a simultaneous ________ and ________.
A. increase in the money supply; increase in the price of oil B. decrease in taxes; decrease in the price of oil C. increase in taxes; decrease in government spending D. increase in the price of oil; massive crop failure