If different markets for a product produced by a monopolist can be separated and if the elasticity of demand differs between the two markets, then the monopolist will
A) be able to make higher profits by using price discrimination.
B) charge a single price in all markets.
C) go out of business.
D) sell the product in only one of the markets with inelastic demand curves.
Answer: A
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Which of the following statements is likely to be true according to Okun's Law?
A) The unemployment rate remains constant when the growth rate of real GDP is 0%. B) The unemployment rate remains constant when the growth rate of real GDP is 3%. C) The unemployment rate increases when the growth rate of real GDP is above 3%. D) The unemployment rate declines when the growth rate of real GDP is below 3%.
The timeshare condominium in Florida you bought last year turned out to involve many extra costs and restrictions that were not apparent when you bought it. This is an example of
a. natural selection b. moral hazard c. hidden actions d. open-access resources e. hidden characteristics
Cleaning an environment may lead to: a. less production. b. higher prices
c. lower incomes. d. all of the above.
Sunk costs
A) are costs associated with repairing something you already own. B) are important for optimal decision making. C) are costs that have already been paid and cannot be recaptured in any significant way. D) are costs that firms sink into marketing.