In order to effectively price discriminate, one requirement is that a seller must be able to:
A. identify customers with different reservation prices.
B. reduce costs when producing the discounted item.
C. resell the product.
D. avoid detection because price discrimination is illegal.
Answer: A
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If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described as
A. inferior. B. normal. C. inelastic. D. elastic.
The marginal revenue product can be written as:
a. TR / P. b. w / Q. c. MP × P. d. MRP × P. e. w × L.
An economy is said to have a comparative advantage in the production of a good if it can:
A) produce that good with more resources than another economy. B) produce that good with a higher opportunity cost than another economy. C) produce that good outside its production possibilities curve. D) produce the good at a lower opportunity cost than another economy.
A decrease in business taxes will most likely result in a(n):
a. Decrease in aggregate demand and increase in aggregate supply b. Decrease in aggregate demand and aggregate supply c. Increase in aggregate demand and aggregate supply d. Increase in aggregate demand and decrease in aggregate supply