Price discrimination exists when
A) a firm charges different buyers different prices for its product but the costs are the same.
B) each buyer is treated equally.
C) sales are made below cost.
D) a firm charges each buyer a price of the product in proportion to its costs.
Answer: A
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According to the EPA’s first prospective study of the Clean Air Act Amendments (CAAA) of 1990,
a. these amendments do not pass the feasibility test b. the estimated present value of benefits outweigh the present value of costs c. the CAAA achieve allocative efficiency d. the present value of net benefits associated with these amendments are negative
A firm that is maximizing its profit
A) is economically efficient and technologically efficient. B) is economically efficient but might be technologically inefficient. C) is technologically efficient but might be economically inefficient. D) might be economically inefficient and/or technologically inefficient.
The committee of the National Bureau of Economic Research that determines when a recession in the U.S begins and ends looks at
a. employment, industrial production, sales, and personal income. b. real GDP. c. employment and sales. d. employment. e. sales and industrial production.
The Phillips curve
a. was a single curve and relatively well-defined for the 1960s b. demonstrates how to achieve stable economic growth c. shows the trade-off between deficits and inflation d. relates the interest rate to investment e. becomes vertical at full employment