When a monopolist practices price discrimination, compared to a single-price monopolist, deadweight loss will:
a. decrease.
b. increase initially, and then return to its original level.
c. remain the same.
d. increase.
a. decrease.
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Answer the following questions true (T) or false (F)
1. In absolute value, the tax multiplier is greater than the government purchases multiplier. 2. If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households. 3. The tax multiplier is calculated as "one minus the government purchases multiplier."
If a firm sells 200 units of output at $15 per unit and 210 units of output when price is reduced to $14, its marginal revenue from selling the last unit is
A) $60. B) $210. C) $294. D) -$60.
A decrease in the degree a good is liked (the increase in the taste for a good) would
A. move its demand curve to the right. B. cause a movement along the demand curve to a (lower price, higher quantity) point. C. move its demand curve to the left. D. cause a movement along the demand curve to a (higher price, lower quantity) point.
What did the former British Prime Minister Winston Churchill mean when he said,"Democracy is the worst form of government, except for all those other forms that have been tried from time to time"?
What will be an ideal response?