Explain the optimal strategy that a price discriminating firm would use when pricing in markets with different elasticities
What will be an ideal response?
The optimal strategy for a firm that can sell in more than one market is to charge higher prices in markets with low demand elasticities and vice versa.
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The amount of revenues that sellers actually receive over and above the minimum acceptable amount that they are willing to receive for selling a product is called
A. production costs. B. producers' supply. C. consumer surplus. D. producer surplus.
Open market sales ________ reserves and the monetary base thereby ________ the money supply
A) raise; lowering B) raise; raising C) lower; lowering D) lower; raising
Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply:
A. increases $100,000. B. increases $500,000. C. increases $600,000. D. decreases $500,000.
Daily newspapers have been rising in price in recent years because:
A. wages in the newspaper industry have risen dramatically. B. the overhead costs have recently been spread over a shrinking number of buyers. C. capital has replaced virtually all labor used to produce a newspaper. D. long-standing government subsidies have been removed in most major cities.