For a firm to maximize total profits through price discrimination, it should
a. Firms should charge a low price to high-value consumers and a high price to low-value consumers
b. Firms should charge a high price to high-value consumers and a high price to low-value consumers
c. Firms should charge a low price to high-value consumers and a low price to low-value consumers
d. Firms should charge a high price to high-value consumers and a low price to low-value consumers
d
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To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year
A) intermediate goods and services produced and all the final goods and services produced B) intermediate goods and services produced C) goods but not services produced D) final goods and services produced E) goods and services produced
If the income elasticity of demand for a good is 0.5, then
a. it is a normal good, and its demand curve will shift to the left if buyers' incomes increase b. it is a normal good, and its demand curve will shift to the right if buyers' incomes increase c. it is an inferior good, and its demand curve will shift to the right if buyers' incomes increase d. it is an inferior good, and its demand curve will shift to the left if buyers' incomes increase e. there is insufficient information to determine whether the good is normal or inferior
Data concerning the four-firm concentration ratios for U.S. manufacturing industries indicate that
a. very few oligopolies exist in the real world but the oligopoly model is still useful because it tells us something about firm behavior b. oligopolies are the second most prevalent market structure, monopoly being the first c. the four leading firms usually have less than 10 percent of industry sales d. the ratios are considerably less than the ratios in Canada and Western Europe e. oligopolies are very common
A decrease in aggregate demand could be caused by
A. A decrease in the value of the domestic currency. B. A booming economy. C. Expansionary monetary policy. D. Contractionary monetary policy.