When a monopolist switches from charging a single price to practicing perfect price discrimination, it reduces
a. total surplus.
b. the quantity produced.
c. the firm's profit.
d. consumer surplus.
Ans: d. consumer surplus.
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The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of holding a dollar for a year is
A) 16 cents. B) 88 cents. C) 48 cents. D) 12 cents. E) 8 cents.
Explain how not knowing whether someone will vote naively or strategically could make vote manipulation through agenda setting more difficult
What will be an ideal response?
Using the table above, if the current market value of the dollar is 110 francs
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor C expects dollar depreciation, but A and B expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
What are the costs of capital mobility?
What will be an ideal response?