In order for a firm to be able to price discriminate it must not be a price taker, there must be different demand from different groups of consumers, and there must be an ability to prevent resale

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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The menu cost theory states that

A) wages depend on the productivity of workers. B) economic agents quickly learn the likely responses of the Fed to changes in unemployment. C) the economy is characterized by perfect competition. D) prices are not fully flexible because it is costly for firms to change prices every time there is a demand change.

Economics

If manager performance is easily observable then

A) profits will be maximized for the firm. B) the owner can directly reward the manager. C) the manager will attempt to manipulate the reported profit. D) the firm's stock price will go up.

Economics

Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's

a. True b. False Indicate whether the statement is true or false

Economics

In the figure above, the relationship between the x variable and the y variable

A) is positive.
B) is negative.
C) starts by being positive and then becomes negative.
D) starts by being negative and then becomes positive.

Economics