When a firm uses a form of quantity discrimination it is the high quantity purchasers that generate most profit
Indicate whether the statement is true or false
False. Most profit is generated by the fact that the firm is able to charge a high price to purchasers of low quantities and cut in their consumer surplus.
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Refer to the table above. Which of the following statements is true?
A) There is a surplus of 10 notebooks in the market when the price of one notebook is $8. B) There is a shortage of 4 notebooks in the market when the price of one notebook is $6. C) There is a shortage of 12 notebooks in the market when the price of one notebook is $4. D) There is a surplus of 4 notebooks in the market when the price of one notebook is $5.
Payroll taxes are paid on
A) earned income. B) investment income. C) inheritances. D) all of the above
Which of the following are included in GDP?
a. Traffic congestion b. Crime c. Pollution d. Underground economic activity e. None of the above
By buying bonds, the Fed decreases the quantity of reserves in the banking system and decreases the money supply.
a. true b. false