Which of the following is NOT a precondition for price discrimination?
A) The product cannot be resold to another customer.
B) The price elasticities of demand are different for each group of consumers.
C) The product is a durable good.
D) The seller must have some market power.
Answer: C
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Developments which marked the beginning of the modern period of Western Europe around the year 1500 did not include which of the following?
(a) The rise of nation states and decline in power of the feudal nobility (b) The Protestant Reformation (c) Creation of national markets, commercial growth and exploration abroad (d) The rise of Islam to centralized power in North America
Tests for statistical significance must be performed
A. because the TRUE values of the intercept and slope parameters are random variables. B. because the ESTIMATED values of the intercept and slope parameters are not, in general, equal to the true values of the intercept and slope parameters. C. because the computed t-ratios are random variables and may be too large to provide evidence that b is not equal to zero. D. in order to determine whether or not the parameter estimates are far enough away from zero to conclude that the true parameter values are not equal to zero. E. both b and d
Suppose a college increases the wages paid to student employees. Which of the following options is the best description of the most likely effect of the increase in wage earnings on the demand curve for school sweatshirts in the bookstore?
A) The demand curve shifts to the right. B) The demand curve shifts to the left. C) a leftward movement along the demand curve D) a rightward movement along the demand curve
An implication of the downward slope of the demand curve for a monopolistic competitive firm is that
A) its marginal revenue curve slopes upward. B) its marginal revenue curve and its demand curve are identical (same) line. C) its marginal revenue curve slopes downward but lies above the demand curve. D) its marginal revenue curve slopes downward but lies below the demand curve.