What is the equilibrium condition for price discriminating monopoly firm? Give some examples for price discrimination.
What will be an ideal response?
The equilibrium condition is:MC = MRA = MRB = MRC
Examples include: (a) movie theaters charging a lower price for children and senior citizens than for other viewers, (b) fast food restaurants offering discount to students, (c) and theme parks charging lower admission prices to in-state residents
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Refer to Table 11.1. What is the value of the marginal propensity to consume?
A) 0.15 B) 0.6 C) 0.75 D) 0.9
Which of the following will restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) A reduction in the investment in the economy B) A reduction in the demand for goods and services in the economy C) A decrease the real exchange rate D) An increase in the interest rate