Arnie's Airlines is a monopoly airline that is able to price discriminate. If Arnie's decides to price discriminate, then
A) Arnie's profit increases.
B) consumer surplus increases.
C) Arnie's revenues decrease.
D) Arnie's sells fewer tickets.
E) Arnie can no longer set a price that depends upon the buyer's willingness to pay.
A
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Which of the following people would be considered frictionally unemployed?
a. The President of the United States b. An elementary school student c. A lifeguard unemployed during the winter d. A high school graduate entering the labor market for the first time e. A person laid off from his job
A merit goods is
a. a public good provided by government that people deem necessary and important b. a good that the market does not produce in quantities and at prices that governmentbelieves is warranted c. the highest quality of a public good that government produces d. a public good produced in the most efficient way e. a civilian public good as opposed to a national security good produced bygovernment
Which of the following statements best illustrates "Luddite reasoning"?
A. Labor is necessary for building and maintaining machines, and so increased demand for machines increases the demand for labor. B. Technology increases total output, and so it will increase the demand for labor. C. Technology makes it possible to replace workers with machines, and so it will decrease the overall demand for labor. D. New technology changes the type of labor demanded.
In the above figure, for any output level less than Q2, this firm experiences
A. decreasing long run average costs. B. diseconomies of scale. C. constant economies of scale. D. economies of scale.