Which of the following is true of perfect price discrimination?
a. A monopolist engages in perfect price discrimination when it cannot identify the minimum price the buyer is willing and able to pay.
b. A monopolist engaging in perfect price discrimination targets only the groups that are price sensitive
c. A monopolist engaging in perfect price discrimination produces the same output level as under perfect competition.
d. A monopolist engages in perfect price discrimination when it is able to charge different prices to distinct customers based upon variances in willingness to pay.
c
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Refer to the scenario above. Which of the following will happen if Sarah opens a day care facility and takes care of 5 children, in addition to her son, charging $12,000 per year for each child?
A) The country's trade deficit will increase by $2,400. B) The country's trade surplus will increase by $12,000. C) The country's GDP will decrease by $12,000. D) The country's GDP will increase by $60,000.
Which of the following statements is (are) correct? According to real business cycle theory,
a. the desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and, thus, stable prices. b. there is some role for activist monetary stabilization policy of a Keynesian type. c. changes in aggregate demand cannot impact output. d. Both a and b e. Both a and c
In 1902, total government expenditures at all levels of government were around _____
a. 10 percent of GDP b. 20 percent of GDP c. 30 percent of GDP d. 40 percent of GDP
Refer to the above figure. What price-output combination would apply under perfect competition?
A) P4 and Q1 B) P3 and Q2 C) P2 and Q3 D) P1 and Q1