A price-discriminating monopoly charges the lowest price to the group that:

A. has the most elastic demand.
B. purchases the largest quantity.
C. engages in the most arbitrage.
D. is least responsive to price changes.


Answer: A

Economics

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Compared to the case in which a monopoly insurer offers the consumer a contract, if insurance is competitively provided:

a. any moral hazard or adverse-selection problem is alleviated. b. any moral hazard or adverse-selection problem is worsened. c. the essence of any moral hazard or adverse-selection problem would not change much. d. insurers would no longer offer menus of contracts.

Economics

Which statement is true?

A. There is no one single cause of homelessness. B. Most of the homeless have jobs. C. There are fewer Americans homeless than ten years ago. D. People are homeless because they want to be.

Economics

Scott used $4,000,00 . from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His accountant calculated his profit to be:

a. $300,000 b. $100,000 c. $80,000 d. $20,000

Economics

Economic stagnation coupled with high inflation is commonly called:

A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.

Economics