Third-degree price discrimination exists when
A) the seller knows exactly how much each potential customer is willing to pay and will charge accordingly.
B) different prices are charged by blocks of services.
C) when the seller can separate markets by geography, income, age, etc., and charge different prices to these different groups.
D) when the seller will bargain with buyers in each of the markets to obtain the best possible
price.
C
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The deadweight loss from a $3 tax will be largest in a market with
a. inelastic supply and elastic demand. b. inelastic supply and inelastic demand. c. elastic supply and elastic demand. d. elastic supply and inelastic demand.
Which of the following is not an example of a barrier to entry?
a. Mighty Mitch's Mining Company owns a unique plot of land in Tanzania, under which lies the only large deposit of Tanzanite in the world. b. A chemist receives a patent for a new skin cream. c. An entrepreneur opens a cupcake bakery. d. A taxi cab driver in New York City obtains a license to legally provide transportation in New York City.
Which of the following is a flow?
A. Saving B. Assets C. Wealth D. Money
In the above table, the marginal propensity to save is
A. 0.2. B. 0.6. C. 0.8. D. 0.4.