Which conditions must hold if a firm is to successfully engage in price discrimination?
A. It must be extremely difficult, if not impossible, for one consumer to resell a product to another.
B. Firms must have a sufficiently low amount of market power.
C. Consumers must have very similar preferences for the product.
D. All of these are correct.
Answer: A
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Refer to above Table 2-1. What is the level of National Income?
A) 2630 B) 2420 C) 2660 D) 2430
The law of supply states that, holding other factors constant, as price increases
a. Quantity supplied increases b. Quantity supplied decreases c. Quantity demanded increases d. Quantity demanded decreases
Which of the following does not lead to the CPI underestimating increases in prices?
a. The substitution bias b. The quality bias c. The new outlet bias d. The housing bias
Proponents of requiring the government to balance its budget argue that debt burdens future generations. Explain one claim they make to support this argument