In order to practice any form of price discrimination, a monopoly must be able to
a. identify the maximum price that each customer is willing to pay.
b. separate its customers into distinct groups.
c. prevent resale of its product.
d. establish a legal barrier to entry.
c. prevent resale of its product.
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Refer to the scenario above. This is an example of a(n) ________
A) extensive-form game B) simultaneous-move game C) zero-sum game D) mixed strategy game
In Figure 6-5, if price falls from point A to point B along the unit-elastic demand curve,
A. total expenditure remains unchanged. B. total expenditure increases. C. total expenditure decreases. D. total expenditure first increases and then declines.
The used car market is
A. used to describe the "lemons" problem. B. an example of what happens when there is an imbalance of information present in a market. C. subject to the problem of adverse selection. D. All of these statements are true.
If in order to sell its bonds the government raises interest rates on the bonds it offers, financing government spending by public debt, it
a. may end up crowding out private investment and slowing economic growth in the private sector b. may end up crowding out public investment and increasing economic growth in the private sector c. may slow down inflation and maintain economic growth d. makes it cheaper for private industry to finance its own investment e. will convert deficits to surpluses but at the expense of stable prices