If Massage R Us, a spa chain specializing in massage, offers a lower price for a massage to senior citizens, this is an example of ________.
A) second-degree price discrimination
B) first-degree price discrimination
C) third-degree price discrimination
D) zero-degree price discrimination
C) third-degree price discrimination
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When single-input producer choice sets are non-convex, the first order condition of the profit maximization problem is neither necessary nor sufficient for identifying the profit maximizing production plan.
Answer the following statement true (T) or false (F)
Explain what market signaling is?
What will be an ideal response?
A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands. b. Mary will have a higher per capita output from her piece of land. c. John will not be able to rent out a portion of his land. d. Mary will have a greater incentive than John to invest in her piece of land. e. John will be able to use his land as collateral for a loan from a bank.
For a macroeconomist, the case for aggregation is based on two principles—(1) the composition of demand and supply may not matter for some purposes and (2)
A. during fluctuations markets normally move together. B. individual markets allocate resources efficiently. C. inflation, unemployment, and growth never go together. D. individual markets distribute income efficiently.