Which of the following values of the Lerner Index indicates the greatest amount of market power?
A) 0.313.
B) 0.375.
C) 0.6.
D) 0.625.
D
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Discounted tickets for children into events is what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
Which of the following would be an example of a transaction later regretted because it was made with incomplete information?
A. Sue purchased a lottery ticket that did not win her any money. B. Larry moved to a new apartment but later decided it was too small for his needs. C. Tim bought products from a seller that knew they were defective. D. All of these are good examples of incomplete information.
The Federal Reserve conducts
A. only monetary policy. B. only fiscal policy. C. both monetary and fiscal policy. D. neither monetary nor fiscal policy.
If price is greater than marginal cost, a perfectly competitive firm should increase output because
A. The price it receives for its product is increasing. B. Marginal costs are increasing. C. Additional units of output will add to the firm's profits (or reduce losses). D. Total revenues would increase.