Price discrimination
A) eliminates the producer surplus.
B) turns consumer surplus into producer surplus.
C) decreases output below the profit-maximizing level.
D) lowers a monopoly's economic profit.
B
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Susan just sold her text books for $200 cash and deposited the cash she received in her checking account. This transaction has
A) increased the quantity of M1. B) decreased the quantity of M1. C) increased the quantity of M2. D) decreased the quantity of M2. E) not changed either M1 or M2.
Refer to Figure 10.9. Other things equal, a negative demand shock is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
As a patent in a the pharmaceutical industry expires, the market for these drugs
a. Can now be categorized as a competitive market b. Can now be categorized as a monopolistic market c. Was and is still a monopolistic market d. Was and is still a competitive market
A country benefits from trade if it is able to obtain a good from a foreign country by giving up more of other goods than it would have to give up to obtain the good at home
a. True b. False Indicate whether the statement is true or false