At many municipal golf courses, local residents pay a lower fee to play than other golfers do. One necessary condition for the golf course to be able to successfully price discriminate according to residency is that
A) they can check the identification cards of golfers.
B) local resident golfers and other golfers have the same price elasticity of demand to play at the municipal course.
C) there are many golf courses nearby from which golfers can choose.
D) they require all golfers to rent a cart.
A
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When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 units of output, its total cost increases to $9.4 million. Within this range, the marginal cost of an additional unit of output is
A) $41.43. B) $134.29. C) $135. D) $145.
Which of the following examples would most likely happen when interest rates are high?
a. Mateo takes his money out of treasury bills. b. Lucia keeps $5,000 under her mattress for a rainy day. c. Santiago decides to carry more cash in his wallet each day. d. Maria invests $10,000 in a short-term CD.
The price elasticity of demand is calculated by:
A. the change in price divided by the change in quantity demanded. B. the change in quantity demanded divided by the change in price. C. the percentage change in price divided by the percentage change in quantity demanded. D. the percentage change in quantity demanded divided by the percentage change in price.
The average tax rate required to service the public debt is roughly measured by:
A. the absolute size of the debt. B. the debt as a fraction of the GDP. C. interest on the debt as a percentage of the GDP. D. the ratio of government spending to the GDP.