Second-degree price discrimination allows firms to do all of the following except which one?
A) sell more units
B) earn less profit compared to charging the profit-maximizing price for all units
C) receive a higher price of the first units sold
D) change some of the consumer surplus into profit
B) earn less profit compared to charging the profit-maximizing price for all units
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If country A produces S at a lower relative price than country B, A is said to have a comparative advantage in S
Indicate whether the statement is true or false
The Glass-Steagall Act was designed to
A) legally separate investment banking from commercial banking. B) promote mergers in the banking industry. C) impose high capital ratios on investment banks. D) promote the interests of community banks.
When businesses cooperate and agree to hold prices high, it is called ____________, and when they reach a noncooperative equilibrium it is called _______________.
A. collusion; competition B. competition; collusion C. commitment strategy; collusion D. collusion; commitment strategy
The way one firm relates to another in the supply chain is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.