A price-discriminating monopolist will make less in profit than will one that does not price-discriminate.
Answer the following statement true (T) or false (F)
False
Price discrimination allows a monopolist to charge each consumer the maximum price that customer is willing to pay for a product. A non-price-discriminating monopolist must charge the same price to everyone and earns a smaller profit as a result.
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Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?
a. increasing marginal returns b. diminishing marginal returns c. economies of scale d. diseconomies of scale e. constant returns to scale
Which of the following terms describes a restrictive practice that involves forcing the purchase of a second good when purchasing another good?
a. Exclusive dealing b. Predatory pricing c. Tying d. Bundling
If investment spending depends on GDP, this is called induced investment
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true of the official classification of money? a. Currency is a component of M1, not M2
b. Traveler's checks is a component of M1, not M2. c. M2 includes demand deposits as well as saving accounts. d. M2 excludes demand deposits and saving accounts.