Because it is based on differences in the price elasticity of demand among different groups of consumers, third-degree price discrimination is a more profitable price discrimination strategy than is first-degree price discrimination
Indicate whether the statement is true or false
FALSE
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Suppose the required reserve ratio is 5 percent and the Fed buys a $10,000 bond. If money is deposited into a commercial bank, what will initially happen to money supply?
a. It will increase by $10,000. b. It will increase by $5,000. c. It will increase by 5 percent. d. It will increase by $200,000.
For a monopolist, average revenues:
A. are always equal to price. B. equal price only at the profit maximizing quantity. C. are maximized when total revenues are maximized. D. are always zero at the profit maximizing quantity.
Refer to the above graph. A budget surplus would be associated with GDP level:
A. H. B. J. C. L. D. K.
Answer the following questions true (T) or false (F)
1. Suppose the extra cost for a town to lower its speed limit by 5 mph is $20 per day. Then, the town should lower the speed limit if it can generate an additional benefit of $20 per day. 2. All economic questions arise from the fact that resources are unlimited. 3. Even if the population declines, scarcity will still exist.