Firms who engage in price discrimination usually make the same amount of money as they would if they charged one price.
Answer the following statement true (T) or false (F)
False
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All of the following are characteristics of a battle of the sexes game except
A) each player has a tough strategy and a weak strategy. B) the tough strategy and the weak strategy differ for each player. C) each player prefers the Nash equilibrium corresponding to his or her tough strategy. D) each player prefers the same Nash equilibrium.
In the kinked demand curve model, if one firm reduces its price
A) other firms will also reduce their price. B) other firms will compete on a non-price basis. C) other firms will raise their price. D) Both A and B are correct. E) Both B and C are correct.
If a firm has market power it may be able
A) to protect market share. B) to continue to earn economic profits. C) minimize marginal costs. D) to maximize total revenue.
When the price level increases, the purchasing power of money:
A. decreases. B. stays the same since the purchasing power of money is not impacted by price levels. C. increases by a similar amount. D. first increases and then decreases as people get used to higher prices.