The more homogeneous goods are, the more we expect the law of one price to hold
Indicate whether the statement is true or false
TRUE
Explanation: It is expected to hold better for homogeneous goods.
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The profits from firms who engage in first-degree price discrimination are_____.
A. price-gouging their customers B. showing increased opportunity costs C. less than firms who do not use price discrimination D. equal to consumer surplus
If the GDP per capita is $2,000, and the population is 150,000 people, then the GDP must be:
A. $75. B. $7,500. C. $300,000,000. D. $300,000.
Reasons for studying economics include
a. all of the following b. to better understand world issues by applying the tools of economic analysis c. to help design more effective solutions to society's problems d. to help prepare for careers in fields such as law and politics e. to better understand the impact of world events on an individual's life
If a perfectly competitive firm produces an output level at which price is greater than marginal cost, then the firm should:
A. leave its output decision unchanged because it is earning a profit. B. employ more fixed factors of production. C. expand output to earn greater profits or smaller losses. D. reduce output to earn greater profits or smaller losses.