For direct price discrimination to work
a. The firm must be able to identify the members of the low value group
b. The firm must charge a single price to all its customers
c. The firm need not worry about any arbitrage since all its customers are charged the same price
d. The firm should charge a higher price to those customers with the most elastic demand
a
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In Figure 3-2, a point such as E
A. is not obtainable. B. is an efficient use of resources. C. represents an inefficient allocation of resources. D. indicates that the society is a capitalist society.
Refer to Figure 8A.1. Suppose that the economy starts with a capital stock of K0. Then total saving is given by point ________ and depreciation by point ________
A) c; d B) b; a C) d; c D) a; b
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $8 and they are paying the profit-maximizing wholesale price of $20, what is the retail price of the product?
A) $12 B) $28 C) $8 D) $20
The invisible hand refers to the coordination that occurs from:
A. everyone working in his or her own self-interest. B. a government agency finding efficiencies. C. everyone working for the overall good of society. D. a government coordinating economic activity.