Price discrimination is a rational strategy for a profit-maximizing firm when
A) it is possible to engage in arbitrage across market segments.
B) there is no opportunity for arbitrage across market segments.
C) it is not possible to segment consumers into identifiable markets.
D) firms want to increase the amount of consumer surplus received by its customers.
B
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The natural rate of unemployment:
A) is a constant. B) is the average of the unemployment rate in a country over time. C) is determined by adding the unemployment rates in all countries and then dividing it by the number of countries. D) is always lesser than the level of cyclical unemployment in an economy.
What is aggregate demand? What are its major components?
What will be an ideal response?
Describe the factors that could cause an increase in the wage rate of workers.
What will be an ideal response?
If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50, then
A. a shortage will be created causing the price to rise to the equilibrium price of $4.50. B. a permanent shortage will develop because the government established the minimum price at $5.00. C. a surplus will be created causing the price to fall to the equilibrium price of $4.50. D. a permanent surplus will develop because the government established the minimum price at $5.00.