Price discrimination occurs when a firm sells
A) a given product at different prices at different points in time.
B) a given product at different prices to different ethnic groups.
C) a given product at different prices unrelated to differences in cost.
D) a given product at different prices when it is produced in different colors.
Answer: C
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The optimal level of air quality will increase if
a. the cost of polluting increases b. pollution is found to be self-absorbing c. a new process allows pollution to be removed more cheaply d. the marginal social cost of air quality increases e. the marginal social benefit of air quality decreases
When the U.S. government launched a massive rescue plan in response to the 2008-2009 financial crisis, one of the main actions taken was to ________ because the desire was to lessen the severity of the recession by ________
A) increase the supply of loanable funds; limiting the decrease in investment B) decrease the supply of loanable funds; limiting the decrease in investment C) decrease the supply of loanable funds; encouraging decrease in investment D) increase the supply of loanable funds; encouraging decrease in investment E) increase the demand of loanable funds; encouraging decrease in investment
Suppose the economy's production function is Y = AK0.3N0.7. Suppose K = 200, N = 2000, and A = 1. Calculate the marginal products of labor and capital
What will be an ideal response?
If demand is perfectly inelastic, then:
A. the demand curve is vertical. B. the own price elasticity of demand is infinite in absolute value. C. a small increase in price will lead to a situation where none of the good is purchased. D. None of the statements is correct.