What is the average fixed cost when output is 120 units in Figure 21.2?
A. $80.00.
B. $0.67.
C. $208.00.
D. $96.00.
Answer: A
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Third-degree price discrimination occurs when a monopoly
a. separates its customers into distinct markets, charging a different price to each group. b. charges different prices for the same good sold to the same customer. c. requires the consumer to pay a separate fee simply for the right to purchase the good. d. charges each customer the maximum that he is willing to pay for each item purchased.
The formula for calculating the CPI is
A) (Expenditures in the current year × Expenditures in the base year)/100. B) (Expenditures in the base year/Expenditures in the current year). C) (Expenditures in the base year × 100)/(Expenditures in the current year). D) (Expenditures in the current year/Expenditures in the base year) × 100.
What is the domino effect or contagion?
What will be an ideal response?
The perfectly competitive firm shown in Figure 9-6 is currently producing 80 units of output. To maximize profit (or minimize loss), the firm should
a.
increase output to 180 units
b.
not change its output level
c.
raise its price and hold output constant
d.
raise its price and raise output
e.
increase output to 140 units