What are the conditions for price discrimination?
What will be an ideal response?
The firm must possess some ability to control market price (the firm must possess some monopoly power), the ability to segment customers based on their elasticity of demand, and the product cannot be easily resold.
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There is an externality present only when
A) private costs equal social benefits. B) private benefits equal social benefits. C) private costs or benefits diverge from social costs or benefits. D) private costs equal social costs.
Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price of another good changes
a. True b. False Indicate whether the statement is true or false
Governments sometimes subsidize domestic industries. When this occurs
A) the governments will not impose tariffs. B) the subsidized sell less in international markets because it is more profitable to sell at home. C) the subsidized industries have an advantage on international markets relative to non-subsidized firms. For this reason, other countries often impose tariffs on the subsidized imports. D) the subsidized industries have an advantage on international markets relative to nonsubsidized firms. However, this is not an argument for imposing tariffs and tariffs would violate international agreements.
Using Table 6.1, the inflation rate for 2004 would be 
A. 3.3% (((190.3-184.3)/184.3)*100 %). B. 90.3% (190.3-100). C. 6.0% (190.3-184.3). D. 2.6% (190.3-180.9)/(2*180.9)*100%).