Which is NOT a necessary condition for price discrimination to exist?
A) The firm must face a downward sloping demand curve.
B) The firm must identify buyers with different elasticities of demand.
C) The firm must be able to prevent resale of the product or service.
D) The firm must establish different prices to reflect marginal cost.
Answer: D
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Given constant returns to scale between labor and output, if it takes 1 hour to make 10 yards of cloth, then 100 yards of cloth can be made in
A) 10 hours. B) 100 hours. C) 1000 hours. D) Can't tell without knowing how much capital is used.
Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?
A) 5 percent B) 3 percent C) 8 percent D) 7 percent E) 4 percent