The marginal rate of substitution measures
A) the willingness of a consumer to exchange a good with another consumer.
B) the willingness of a consumer to pay the form for a good.
C) the value in dollars of the last unit of good obtained by the consumer.
D) the rate at which a consumer is willing to exchange one good for another.
D
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Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 10 - QA, and the inverse demand curve for group B is PB = 18 - QB
The monopolist is able to produce the good for either type of customer at a constant marginal cost of 2, and the monopolist has no fixed costs. If the monopolist practices group price discrimination, the profit maximizing prices charged to each type of customer are A) PA = 6, and PB = 10. B) PA = 4 and PB = 8. C) PA = 10, and PB = 6. D) PA = 8, and PB = 4.
If a firm produces components of its goods and services in other countries, it is said to be outsourcing.
Answer the following statement true (T) or false (F)
What are the lessons from the crisis for monetary policy?
What will be an ideal response?
GDP differs from GNP because
A. GDP = GNP - net factor payments from abroad. B. GNP = GDP - capital consumption allowances. C. GNP = GDP - net factor payments from abroad. D. GDP = GNP - capital consumption allowances.