Price discrimination means
A. charging different prices for identical goods that have identical production costs.
B. paying wages according to race or sex rather than productivity.
C. exploiting the working masses by charging the highest single price possible.
D. eliminating all costs so that only profits are realized.
A. charging different prices for identical goods that have identical production costs.
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Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.
A "Jumbo" CD is one in excess of
A) $1,000. B) $10,000. C) $50,000. D) $100,000.
If US workers can produce everything in less time than Mexican workers, it is not possible for the US to gain from trade with Mexico
a. True b. False Indicate whether the statement is true or false
One reason supply curves have an upward slope is because
A) increased supply will require increased technology. B) to have more of the good supplied requires more firms to open. C) people will pay a higher price when less is supplied. D) a higher price brings a greater profit, so firms want to sell more of that good. E) None of the above answers is correct because supply curves have a downward slope.