Refer to the figure below. If the supply curve returns to its initial level of S a , the amount of consumer surplus will return to its original level.
A. True
B. False
C. Uncertain
A. True
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If Big Pools charges an annual membership fee of $500 per person for the use of their pool and charges a $4 fee each time a member uses the pool, this is an example of ________.
A) an all-or-nothing offer B) commodity bundling C) a single pricing scheme D) two-part pricing
Price discrimination occurs when:
a. firms maximize their profit by setting price equal to marginal cost. b. a seller charges different prices to different consumers of the same product or service. c. a seller charges the same price to consumers of a different product or service. d. a seller charges different prices to consumers, discriminating by race or gender of the consumer.
If labor is the only variable input, a firm's labor demand curve is the
a. entire marginal revenue product of labor curve b. downward-sloping portion of its marginal revenue product of labor curve c. downward-sloping portion of its marginal product of labor curve d. demand curve for the product produced by labor e. downward-sloping portion of the firm's marginal revenue curve
A change in the reserve requirement is the tool used least often by the Fed because it:
A. Does not affect bank reserves. B. Can cause abrupt changes in the money supply. C. Does not affect the money multiplier. D. Has no impact on the lending capacity of the banking system.