A price-discriminating monopoly charges the lowest price to the group that:
A. has the most elastic demand.
B. purchases the largest quantity.
C. engages in the most arbitrage.
D. is least responsive to price changes.
Answer: A
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is less than one:
A) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. B) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should buy the toys from Chinese suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
When an average total cost pricing rule is enforced, average total cost equals ________
A) marginal revenue B) total revenue C) price D) average total cost
Cautious banks may choose to hold excess reserves instead of lending them
Indicate whether the statement is true or false
We should expect the consumption function to shift downward if
a. real interest rates rise. b. price levels fall. c. consumers become more optimistic about future incomes. d. consumers become more pessimistic about future incomes.