Third-degree price discrimination occurs when a monopoly
a. separates its customers into distinct markets, charging a different price to each group.
b. charges different prices for the same good sold to the same customer.
c. requires the consumer to pay a separate fee simply for the right to purchase the good.
d. charges each customer the maximum that he is willing to pay for each item purchased.
a. separates its customers into distinct markets, charging a different price to each group.
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In which scenario can a perfectly competitive firm continue to produce in the short term, even though it would mean economic losses (where P = price, AVC = average variable costs, and ATC = average total cost)?
a. P < AVC but P > ATC b. P = AVC + ATC c. P > ATC – AVC d. P > AVC but P < ATC
The amount of money paid to workers as wages is an example of fixed costs
a. True b. False Indicate whether the statement is true or false
On average, since 1900 U.S. output has grown roughly ________ times faster than population growth.
A. 3 B. 4 C. 5 D. 2
The ability to produce a good at lower opportunity costs than another producer is known as
A) comparative advantage. B) marginal cost production. C) economies of scale. D) absolute advantage.