In practice, price discrimination is never perfect. Why?
What will be an ideal response?
There are two reasons as to why price discrimination is never perfect in practice. They are as follows:
a) It is very difficult to charge a unique price to each and every consumer.
b) It is impossible to know every consumer's willingness to pay for a product.
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Present and explain the Fundamental Equation of the Monetary Approach
What will be an ideal response?
In banking, the spread refers to the difference between the
A) interest rate on long-term bonds and the interest rate on short-term bonds. B) interest rate on car loans and the interest rate on home mortgages. C) average interest rate earned on assets and the average interest rate paid on liabilities. D) bid and asked prices on a bond.
Fractional reserve banking can be thought of as a bank
A) withholding a portion of its total deposits that are not loaned out. B) holding deposits equal to its net worth. C) paying a fraction of its profit to depositors. D) loaning out all of its reserves.
Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
A. Taxes on pollution B. Voluntary compliance C. Tradable emissions permits D. Direct controls like legal ceilings