Which of the following is (are) price discrimination?
i. charging different prices based on differences in production cost
ii. charging business flyers a higher airfare than tourists
iii. charging more for the first pizza than the second
A) i only
B) ii only
C) ii and iii
D) i and iii
E) i, ii, and iii
C
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If an economy imposes entry barriers to entrepreneurship:
A) the opportunity cost of entrepreneurship will increase. B) the number of entrepreneurs in the economy will increase. C) the aggregate output in the economy will increase. D) the opportunity cost of entrepreneurship will decrease.
Philip is an average contractor in town, and he earns $40,000 a year. Billy is the best contractor in town, and he earns $480,000 a year. Philip's contracting services
a. are valued more by the market relative to Billy's and that explains why his income is higher than Billy's. b. are valued less by the market relative to Billy's and that explains why his income is higher than Billy's. c. are valued less by the market relative to Billy's and that explains why his income is lower than Billy's. d. are more expensive because he receives a compensating differential.
Refer to the following table:
What is the marginal cost for the 5th unit of the activity?
A. 186 B. 189 C. 175 D. 180 E. none of the above
Which of the following is always associated with monopolistic competition?
A. identical products B. economic profits in the short run C. product differentiation D. Demand curves become more inelastic as new entry occurs.