If resale is easy, then
A) price discrimination won't work, because then only low-priced goods are sold.
B) consumers' demand curves will shift to the low-priced good.
C) firms will stop providing the good.
D) price discrimination results in lower consumer surplus.
A
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The reserves of a commercial bank consist of:
A. the amount of money market funds it holds. B. deposits at the Federal Reserve Bank and vault cash. C. government securities that the bank holds. D. the bank's net worth.
Exhibit 8-7 Monopolist
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According to the information provided in Exhibit 8-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $10, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit-maximizing price. B. Increase price and increase output. C. Decrease price and increase output. D. Increase output and hold price constant.