The producer's surplus is equal to the difference between how much the seller can charge for a product and how much the consumer is willing to purchase it for
a. True
b. False
Indicate whether the statement is true or false
False
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If Sail Away Cruises offers customers a free cruise ticket with each full priced cruise ticket purchased, this is an example of ________.
A) zero-degree price discrimination B) first-degree price discrimination C) third-degree price discrimination D) second-degree price discrimination
To earn an economic profit in the short-run, a monopolist sets marginal revenue equal to zero
a. True b. False Indicate whether the statement is true or false
Economists use models in order to
a. experiment with alternative circumstances. b. make educated guesses about real life events. c. predict outcomes under various hypothetical conditions. d. increase understanding of how a relationship actually works. e. All of the above are correct.
If a country experiences persistently low inflation, which of the following tends NOT to occur?
A) wage indexation will become less important B) nominal wages will be set for shorter periods of time C) the markup over labor costs will decrease D) all of the above