Which of the following is false about quantity discounts?
a. Quantity discounts are a form of price discrimination which allow a seller to charge a higher price for the first unit than for later units.
b. Quantity discounts allow price discriminating producers to extract additional consumer surplus from customers.
c. Price discrimination, such as offering quantity discounts, can result in a greater output, and thus greater consumer surplus and producer surplus, by a monopolist than if price discrimination was not possible.
d. Quantity discounts benefit those customers who would not buy any of a monopolist's product at the price that the monopolist would charge if it could not price discriminate.
c
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Which of the following is related to the concept of trade-off used in economics?
a. Paying tuition to attend college b. Paying a high price for a movie ticket on the first day of screening c. Not having enough information available to make a rational decision d. Giving up one good or activity in order to obtain some other good or activity e. Having your cake and eating it too
For a profit-maximizing monopolist,
a. P > MR = MC. b. P = MR = MC. c. P > MR > MC. d. MR < MC < P.
The dollar appreciates against foreign currencies. This makes foreign-produced goods __________ for Americans and U.S.-produced goods __________ for foreigners. As a result, U.S. __________ fall and U.S. __________ rise
A) more expensive; cheaper; imports; exports B) cheaper; more expensive; exports; imports C) cheaper; more expensive; imports; exports D) more expensive; cheaper; exports; imports
The fallacy in the strict crowding-out argument comes from supposing that
A. the Federal Reserve always accommodates the U.S. Treasury in its financing of the deficit. B. corporations always outbid small businesses for government contracts. C. the economy’s flow of saving is fixed. D. investors will spend more when G increases.