Both first-degree price discrimination and optimal two-part tariff pricing maximize economic surplus
Indicate whether the statement is true or false
TRUE
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Use the data in the above table and suppose that labor is the only variable factor of production. At what level of output does the marginal cost start to rise at Decent Donuts?
A) 0 dozen donuts B) 111 dozen donuts C) 128 dozen donuts D) There is not enough information given to determine when the marginal cost starts to increase.
The concept of inferior goods can be used to show that
A) lower prices signal poorer quality. B) indifference curves can have positive slopes. C) being able to consume more of all goods does not mean that a person will consume more of every good. D) consumers will always buy more of all products if their incomes increase.
If a firm sells more than the break-even quantity,
a. It will make a profit b. It will only cover the variable costs c. It will make a loss d. A firm is unable to sell above the break-even quantity
While unions represent only a fraction of the unskilled workers in the U.S. labor market, any wage increase won by unionized workers is most likely shared with non-union unskilled workers
a. True b. False Indicate whether the statement is true or false