When a firm engages in perfect price discrimination,
a. marginal revenue is equal to price
b. marginal revenue is below price
c. marginal revenue is below marginal cost
d. profits are reduced relative to a single-price monopolist
e. rent-seeking behavior must occur
A
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Which of the following conclusions is not supported by the Three-Sector-Model?
a. A decrease in borrowing causes the real risk-free interest rate to fall and equilibrium quantity of real loanable funds to fall. b. An increase in the supply of a nation's real loanable funds reduces the real risk-free interest rate and increases the equilibrium quantity of real loanable funds. c. An increase in a nation's demand for goods and services within the intermediate range results in an increase in the real GDP and a lower GDP Price Index. d. An increase in the value of a nation's currency encourages domestic imports and discourages exports. e. All of the above are supported by the Three-Sector Model.
Which is an example of the government command approach?
A. Fast-food franchise growth B. Public schools C. Private college education D. The growth of community banks