Declining-block quantity discrimination makes sense if
A) buyers of smaller quantities are more price sensitive than buyers of larger quantities.
B) buyers of smaller quantities are less price sensitive than buyers of larger quantities.
C) demand for the good is perfectly elastic.
D) the lower price for larger quantities encourages all consumers to purchase the larger quantity.
B
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Which of the following is key for the Coase Theorem to reach an optimal solution to an externality?
A. Clearly defined property rights B. Both parties having property rights C. No property rights D. A single party with property rights
Some argue that tariffs always hurt the imposing country's economic welfare, and are typically designed to shift resources from one sector to another, protected or preferred one, within an economy. Find and discuss a counter example to this argument
What will be an ideal response?
Which of the following is not a condition for perfect competition?
A. Firms have perfect information. B. Firms take prices as given. C. Firms are protected by barriers to entry. D. Firms sell a standardized product.
Distinguish between a voluntary export restraint and a quota
What will be an ideal response?