Perfect price discrimination
a. increases profits to the firm.
b. increases total surplus.
c. decreases consumer surplus.
d. All of the above are correct.
d
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Mortgage lenders often resell mortgages in secondary markets. How might this make lenders act differently than if they intended to hold the mortgages themselves?
What will be an ideal response?
Consider an unregulated monopoly in Figure 13.2. At the firm's profit maximizing output level, its total cost is:
A. $1,000,000. B. $200,000. C. $800,000. D. $600,000.
If income decreases by 20% and, in response, the quantity of housing demanded decreases by 14%, then the income elasticity of demand for housing is
A. -1. B. 1.43. C. -0.7. D. 0.7.
Prior to World War II, the probability that an economic expansion of a given age would end in the next month
A. remained fairly steady as the age of the expansion increased. B. decreased as the age of the expansion increased. C. increased as the age of the expansion increased. D. was not associated with the age of the expansion.