Price discrimination is:
a. when firms charge different prices to different customers based on the different costs of serving them.
b. when firms charge different prices to different customers based on their willingness to pay.
c. an illegal practice.
d. a practice that leads to the same outcome as would public ownership of a monopoly.
Ans: b. when firms charge different prices to different customers based on their willingness to pay.
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Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer
What will be an ideal response?
Using the information in the table shown, the average revenue for 5 units is:
This table represents the revenues faced by a monopolist.
A. $600
B. $300
C. $3,000
D. $120
Considering the market for loanable funds as depicted in the given graph, a change that increased the quantity people want to save at any given interest rate would cause a new equilibrium at a:
A. lower interest rate and a higher equilibrium quantity of funds saved and invested.
B. higher interest rate and a higher equilibrium quantity of funds saved and invested.
C. lower interest rate and a lower equilibrium quantity of funds saved and invested.
D. higher interest rate and a lower equilibrium quantity of funds saved and invested.
What is the "most favored nation" principle of the WTO?
a. Trading partners may choose a favorite nation to trade with. b. Any nation can refuse to trade with another that is not its most favored nation. c. The WTO has the right to choose the nation that has performed best within the WTO guidelines as its most favored nation. d. Every nation must grant the same rights and treatment to other nations in the WTO as its "most favored nation."