Individual price discrimination is used when
A) firms are dealing with individual consumers, such as in a line at the coffee shop.
B) firms cannot easily determine consumers' reservation prices.
C) firms are selling to non-local buyers.
D) salespeople are in a difficult industry, such as auto sales.
B
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Suppose the desired reserve ratio is 20 percent and there is no currency drain. Then a $1 increase in the monetary base leads to the banking system to increase the quantity of money by
A) $0.02. B) $4. C) $5. D) $20. E) $2.
If the U.S. exchange rate rises, the price to foreigners of U.S.-produced goods and services ________ and the quantity of U.S. dollars demanded ________
A) rises; decreases B) rises; increases C) falls; decreases D) falls; increases
Refer to the table below. If Tacos R Us sells its taco shells separately, what is the profit-maximizing price to charge?
Tacos R Us sells two different types of products; taco shells and taco sauce. For simplicity, assume that the marginal cost of each product is $0, so that Tacos R Us' total revenue is also its total profit.
A) $5
B) $3
C) $7
D) $4
Using Figure 1.7, we know the production of 10 units of soda and 2 units of pizza is 
A. undesirable. B. possible, but only if all resources were fully employed. C. impossible because we either do not have the resources or the technology. D. possible, but there would be unemployed resources.