A perfect price discriminator
A) charges the maximum price for each unit that consumers are willing to pay.
B) is able to convince consumers to pay more for each unit than they are willing to pay.
C) is unable to make an economic profit.
D) disregards the market demand curve.
A
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If average variable costs increase as output increases, then
A) total fixed cost must be increasing also. B) marginal cost must be greater than average variable cost. C) total cost must be constant. D) output must be zero. E) average total cost must be increasing also.
Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip's profit-maximizing output is
A) less than one ton. B) between two and three tons. C) between three and four tons. D) between one and two tons.
The increase in tax on state bank notes from 2 to 10 percent provided state banks incentive to
(a) attract more demand deposits and increase the use of checks. (b) increase the amount of state notes and use them to extend bank credit. (c) increase the minting of coins and use them for exchange and lending purposes. (d) all of the above.
Does a tax on sellers affect the demand curve?
A. No, there is change in the quantity demanded, but the demand curve does not move. B. Yes, it shifts to the left by the amount of the tax. C. Yes, it shifts to the right by the amount of the tax. D. Yes, it shifts up by the amount of the tax.