If price discrimination occurs in a market
A) consumers whose demand for the product sold is more elastic pay higher prices than consumers whose demand is less elastic.
B) the firm earns arbitrage profits.
C) the marginal cost of production is constant.
D) the law of one price does not hold.
D
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When MFC = MRP, a firm in a competitive market will
A) stop hiring. B) hire more workers. C) earn additional profits. D) layoff workers.
If net exports are negative, then aggregate demand will be less than the sum of consumption, investment, and government purchases
a. True b. False Indicate whether the statement is true or false
A reasonable dynamic assumption for the IS-LM model is that
A) the economy is always on both the IS and LM curves. B) the economy is always on the IS curve, but moves only slowly to the LM curve. C) the economy is always on the LM curve, but moves only slowly to the IS curve. D) the money market is quick to adjust, but the bond market adjusts more slowly. E) adjustment to the new IS-LM equilibrium is instantaneous after an LM shift, but not after an IS shift.
The Clayton Act is an antitrust law that was passed to
A) outlaw monopolization. B) address loopholes in the Sherman Act. C) prohibit charging buyers different prices if the result would reduce competition. D) toughen restrictions on mergers by prohibiting mergers that reduce competition.