Economies of scale are also called increasing returns to scale.
Answer the following statement true (T) or false (F)
True
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The strategy underlying price discrimination is to:
a. charge higher prices to customers who have better access to substitutes. b. charge everyone the same price but limit the quantity they are allowed to buy. c. increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. d. reduce per-unit costs by charging higher prices to those with the most elastic demand and lower prices to those with the most inelastic demand.
Monetarists would argue that in the short run, increases in the money supply act to raise both investment and consumption, while also increasing the price level
a. True b. False Indicate whether the statement is true or false
A firm operating in a perfectly competitive market is a price taker because:
A. each firm has a significant market share. B. each firm's product is perceived as different. C. setting a price higher than the market price results in zero sales. D. the market demand curve is perfectly elastic.
An industry utilizes capital and two types of labor. Unskilled labor is a substitute for capital while the skilled labor is complementary to capital. An increase in the price of capital will
A. induce the firms in the industry to cut back on all levels-capital, unskilled and skilled labor. B. cause the demand for labor to increase, raising wages of both skilled and unskilled labor. C. cause the demand for skilled labor to rise and the demand for unskilled labor to fall. D. cause the wage of unskilled labor to rise relative to the price of skilled labor.