Price discrimination is:
A. only illegal if it hurts consumers more than nondiscrimination.
B. only illegal if used to lessen or eliminate competition.
C. always illegal.
D. always legal.
Answer: B
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If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources. b. this raises the market price of resources. c. the market price of resources does not change. d. this lowers the ATC curves of individual firms.
Graphically, the optimum choice of a consumer is determined at: a. the point of intersection of the lowest indifference curve and the budget constraint. b. the point of intersection of the budget line and the vertical axis
c. the point where the highest indifference curve is tangent to the budget constraint. d. the point of intersection of the budget line and the horizontal axis.
If an investor had a $200,000 long-term capital gain on a $50,000 investment from 1984 to 2010, her real annualized rate of return was most likely
A. equal to the real rate of inflation. B. between 11 and 20 percent. C. between 0 and 10 percent. D. negative.
Which of the following is the behavior of a rational consumer?
a. to seek to maximize his or her own total utility b. to purchase a good until marginal utility falls to zero c. to match his or her personal utility to that of all other consumers d. to maximize the variety of goods he or she purchases