If a monopoly is price discriminating between two groups, A and B, based on observable customer characteristics, there is no difference in the marginal cost of selling to the two groups, and the elasticity of demand for group A is -1.5 while the elasticity of demand for group B is -2.1, which of the following is true?
A. The markup and price for group A customers will be higher than for group B customers.
B. The markup and price for group B customers will be higher than for group A customers.
C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher.
D. The price for group A customers will be higher than for group B customers, but there is not enough information to determine which markup will be higher.
A. The markup and price for group A customers will be higher than for group B customers.
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A fiscal policy that changes over time as economic conditions change is considered to be time inconsistent
a. True b. False Indicate whether the statement is true or false
According to the Keynesian view, capitalism
a. is a highly productive form of economic organization that works best when government intervention is least. b. experiences booms and busts because of the instability of private investment that is driven by fickle changes in business optimism. c. experiences booms and busts that are primarily the result of inappropriate monetary policy. d. experiences fluctuations in aggregate demand that cannot be controlled with fiscal policy.
Nate collected Social Security payments of $220 a month in 1985 . If the price index rose from 90 to 108 between 1985 and 1986, then his Social Security payments for 1986 should have been
a. $228. b. $238. c. $257. d. $264.
Which is necessarily true for a purely competitive firm in short-run equilibrium?
A. Marginal revenue less marginal cost equals zero. B. Marginal revenue is zero. C. Price less average total cost equals zero. D. Total revenue less total cost equals zero.