In many areas of the country, electricity customers pay a set per unit price for each of the first X kilowatts and a lower per unit price for any additional kilowatts of electricity consumed in a month
This is an illustration of second-degree price discrimination. Indicate whether the statement is true or false
TRUE
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The people of the Island of Yap used stones as a general medium of exchange. Therefore,
A) their economic system was based upon barter. B) their stones served as money. C) they had no price system, because prices can't be measured with stones. D) inflation was impossible.
In the figure above, an increase in income would result in the budget line
A) making a parallel shift toward point a. B) making a parallel shift toward point c. C) becoming flatter. D) becoming steeper.
A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers
A) an increase in wealth; an increase in wealth B) an increase in wealth; a decrease in wealth C) a decrease in wealth; an increase in wealth D) a decrease in wealth; a decrease in wealth
Joe's Juice Shop operates in a monopolistically competitive market. Joe's is currently producing where its average total cost is minimized. In the long run we would expect Joe's output to
a. decrease and average total cost to increase. b. decrease and average total cost to decrease. c. remain unchanged as Joe's is doing the best it can. d. increase and average total costs to decrease.