Price discrimination is
A) refusing to sell a given product to some group of customers.
B) selling a given product at more than one price.
C) selling a given product at more than one price, with the price differences reflecting differences in marginal cost in providing the product to different groups of customers.
D) selling a given product at more than one price, with the price differences being unrelated to differences in cost.
Answer: D
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Sequential games are used to analyze
A) second-price auctions. B) cartels. C) situations in which one firm acts and other firms respond. D) firms that are subject to the prisoner's dilemma.
Refer to Figure 24-1. Ceteris paribus, a decrease in the price level would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
An oligopoly showing no economic profit or loss has
a. an AR curve tangent to the lowest point of its ATC curve. b. an AR curve tangent to its ATC curve to the left of the lowest point. c. an MR curve above its AR curve. d. an AR curve that crosses its ATC curve.
A hospital receives a large donation and wants to use the funds to buy a new CT scanner. What is included in the opportunity cost of the new CT scanner?
a. There is no opportunity cost because the money was a gift. b. The foregone benefits of a new CT scanner if the funds are diverted to its purchase. c. The cost of the same CT scanner last year. d. The remaining depreciation expense on the CT scanner the hospital is replacing