A price-discriminating pure monopolist will attempt to charge each buyer (or group of buyers):
A. different prices to compensate for differences in the characteristics of the product.
B. the price that equals the buyer's marginal cost.
C. the maximum price each would be willing to pay.
D. the same price if per-unit cost is constant for each unit of the product.
Answer: C
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If there is an increase in the amount of currency held outside banks, then the
A) quantity of money and the monetary base will decrease. B) monetary base will decrease. C) quantity of money will increase. D) quantity of money will not change. E) quantity of money will decrease.
One reason why it is very difficult to write optimal military procurement contracts is because _____
a. there are numerous possible producers b. the military purchases many goods c. new technology often has to be developed d. there are many possible consumers of the product
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna receives $70 from the auction, she can infer that
a. Both the bidders were high value bidders b. Both the bidders were low value bidders c. One of the bidders was high value, while the other was low value d. All of the above
A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)
A. increase in aggregate demand. B. increase in aggregate supply. C. decrease in aggregate demand. D. decrease in aggregate supply.