Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result
A) price elasticity of demand is the same in each market.
B) the price-inelastic market will buy zero units.
C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market.
D) the deadweight loss is less than if the firm price discriminated.
C
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What happens to the marginal product (MP) of labor when the market price of the good produced increases?
a. Increases proportional to price. b. Decreases proportional to price. c. Stays the same. d. Falls because quantity demanded falls. e. Rises because quantity demanded falls.
Given the aggregate demand curve, a beneficial supply shock will:
a. increase potential output and the price level b. decrease potential output and the price level. c. increase potential output and decrease the price level. d. decrease potential output and increase the price level. e. cause no change in potential output or the price level.
To manufacture 1,000 pairs of shoes in a week, a firm must use at least 1,500 workers and 5 machines or 100 machines and 150 workers. Which method can be technically efficient?
A. 1,500 workers and 5 machines B. 150 workers and 100 machines C. Both D. Neither
Suppose the current unemployment rate is 3 percent. If it rises to 4 percent
A. the economy will move closer to the production possibilities curve. B. the economy will move up along the production possibilities curve. C. the production possibilities curve will shift inward. D. the economy will operate farther inside the production possibilities curve.