Which of the following conditions is NOT necessary for a firm to be able to engage in price discrimination?
I. The firm must be able to produce to the point at which price equals marginal revenue.
II. The firm must easily be able to identify consumers with different demand elasticities.
III. The firm must be able to prevent resale of the item it produces and sells.
A) I only
B) III only
C) Both I and II only
D) Both II and III only
Answer: A
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Compensation of losers from opening an economy to international trade is not common because:
A) losers don't lose so much that they would require to be compensated. B) the loss is made up through the availability of a wider array of goods and services. C) it is difficult for governments to carry out such compensation policies. D) the government will have to transfer huge amounts of money to compensate losers.
Consider the case of a teacher who tells students that those who miss more than three classes for any reason will automatically receive a lower grade
A) This is an example of a positive incentive for students to attend class. B) This is an example of a negative incentive for students to attend class. C) The teacher is assuming that students are irrational, and she must force them to attend class. D) Students who miss more than three classes are irrational.
Over the past 40 years, the most frequent target for the Fed's monetary policy has been the: a. prime interest rate
b. federal funds rate. c. M1 money supply. d. M2 money supply. e. required reserve ratio.
When management shuts down a plant and does not allow workers to perform their jobs, there is a
A. Walkout. B. Strike. C. Strikebreaker. D. Lockout.