To practice third-degree price discrimination, each of these market conditions must be met except which one?
A) All consumers must have the same own price elasticity of demand.
B) No arbitrage opportunities can exist between customer groups.
C) The firm must be able to determine in which group each customer belongs.
D) The firm must have market power.
A) All consumers must have the same own price elasticity of demand.
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Dead capital is most likely to exist when
A) there are restrictions on imports. B) residents of a country face barriers to establishing legal ownership of resources. C) property rights are well-defined. D) there are restrictions on exports.
A monopolist
A) can charge whatever price it wants because it is the only firm producing the good. B) can usually keep price equal to marginal revenue by lowering the price on the last unit sold only. C) faces a demand curve that is more elastic than the demand curve for the industry. D) is constrained in its pricing decisions by the demand curve it faces.