For the practice of price discrimination to be successful, the monopoly must
a. face an imperfect resale market for its product.
b. face similar demand curves for various markets.
c. have similar costs among markets.
d. have a downward sloping marginal cost curve.
a
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In the aggregate expenditures model, we note that an increase in government purchases G and an increase in lump-sum taxes T of the same amount will have
A. essentially the same effect on equilibrium real GDP, both in magnitude and in direction. B. different effects on real GDP, with the change in G having a larger impact than the change in T. C. the same magnitudes of impact on equilibrium real GDP, though in opposite directions. D. different effects on real GDP, with the change in T having a larger impact than the change in G.
As a firm expands its output, cost per unit of output (average cost) decreases and then increases. Average cost and output have
A) a relationship with a minimum. B) a relationship with a maximum. C) no relationship. D) a linear positive relationship.
Refer to Figure 4-9. How much of the tax is paid by producers?
A) $45 B) $8 C) $3 D) $2
In the short run, a decrease in the market demand will cause a perfectly competitive firm to ________ production and ________.
A) decrease; earn economic profit B) increase; incur economic losses C) decrease; incur economic losses D) increase; earn economic profit