A firm will practice price discrimination when it believes that by doing so it will be able to increase total

If you have $1,000 in wealth and the price level increases by 20 percent, then

A) the $1,000 will buy fewer goods and services. B) the $1,000 dollars will buy 20 percent more goods and services. C) the real value of the $1,000 increases. D) you will be able to buy fewer goods, but the real value of those goods will increase.

If the marginal external cost of building a children's playground equals zero, then the

A) marginal private cost equals the marginal social cost. B) marginal social cost equals zero. C) marginal private cost equals zero. D) None of the above answers is correct.