A monopoly coffee shop is deciding on a menu of different cup sizes to sell to a population of consumers, some of whom are high demanders and some low demanders. How would the optimal menu differ depending on whether the consumers can be observably separated into the different types or not?
a. The menu is unaffected by type observability.
b. If types aren't observable, the large cup size should be increased to separate the high demander.
c. If types aren't observable, the small cup size should be increased to make it more attractive to low demanders.
d. If types aren't observable, the small cup size should be reduced to make it less attractive to high demanders.
d
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A resource the United States lacked in the 20th century and had to import was:
A. land. B. labor. C. minerals. D. technological creativity.
The federal government spends
A. slightly more on defense than on Social Security. B. slightly more on Social Security than on defense. C. about the same on Social Security as on defense.
For most items, we find the price elasticity of supply will be
A) negative. B) positive. C) zero. D) infinity.
According to the quantity theory of money, deflation will occur if the
A) money supply is less than real GDP. B) money supply is more than real GDP. C) money supply grows at a slower rate than real GDP. D) money supply grows at a faster rate than real GDP.