The price system automatically leads to an efficient allocation of inputs among the different production processes
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that a price-discriminating producer divides its market into two segments
If the firm sells its product at a price of $34 in the market segment with relatively less-elastic customer demand, the price in the market segment with more-elastic customer demand will be A) less than marginal revenue in that market segment. B) less than $34. C) equal to marginal revenue in that market segment. D) greater than $34.
The trade balance is
a. the services balance plus the current account balance plus the capital account balance b. merchandise exports minus merchandise imports c. the current account balance plus the capital account balance d. foreign purchases of domestic assets minus domestic purchases of foreign assets e. the services balance plus the capital account balance
Consumer surplus
a. is the amount a buyer pays for a good minus the amount the buyer is willing to pay for it. b. is represented on a supply-demand graph by the area below the price and above the demand curve. c. measures the benefit sellers receive from participating in a market. d. measures the benefit buyers receive from participating in a market.
A firm switching from a single price to a price discrimination scheme will ________ the price for the group of consumers with a relatively elastic demand and ________ the price for the group of consumers with a relatively inelastic demand.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease