The Internet has made it possible to compare lots of prices without incurring a lot of cost. This
A) has given firms added market power to price discriminate.
B) has significantly reduced search cost and made markets more competitive.
C) has enabled firms to charge higher prices to consumers with computers.
D) has only affected technology markets.
B
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In the figure above, if pizza production increases to 15,000 pizzas a day, the deadweight loss is
A) $45,000 per day. B) $12,500 per day. C) $22,500 per day. D) $90,000 per day. E) zero.
A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5
If the grower practices multimarket price discrimination, which country's consumers will pay a higher price and by how much?
________ can provide incentives to honor implicit contracts.
A. Value maximization B. Adverse selection C. Bargaining power D. Reputational concerns
It has been argued that the information technology age has greatly increased productivity and potential output. If this is true:
A. the long-run real interest rate is lower as a result. B. we should have seen lower short-run interest rates than we have seen. C. nominal long-run interest rates should have increased. D. the long-run real interest rate is also higher as a result.