Perfect price discrimination means:
A. charging each consumer a price exactly equal to his or her willingness to pay.
B. charging the exact same price to each consumer regardless of his or her willingness to pay.
C. charging different prices to different consumers so as to maximize consumer surplus.
D. charging each consumer a price exactly equal to the marginal cost of selling the good to that consumer.
A. charging each consumer a price exactly equal to his or her willingness to pay.
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What causes the labor demand curve to shift? List three factors that can cause the labor demand curve to shift rightward?
What will be an ideal response?
Suppose you borrow $5,000 at an interest rate of 8%. If the expected real interest rate is 3%, then the rate of inflation over the upcoming year that would be most beneficial to you would be
A) 0%. B) greater than 0% but less than 5%. C) equal to 5%. D) greater than 5%.
On the diagram above, show the new steady-state capital-labor ratio that results from a decrease in the saving rate. Can you say what has happened to the equilibrium level of consumption per worker?
What will be an ideal response?
Price discrimination occurs when a firm sells
A) a given product at different prices at different points in time. B) a given product at different prices to different ethnic groups. C) a given product at different prices unrelated to differences in cost. D) a given product at different prices when it is produced in different colors.