What is voluntary exchange?
What will be an ideal response?
Voluntary exchange is a situation that occurs in markets when both the buyer and seller of a product are made better off by the transaction.
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The figure above illustrates a small country's production possibilities frontier. Based on the figure, we can tell that the nation's resources are
A) not equally productive in all tasks because the production possibilities frontier is bowed out. B) unlimited because the slope is negative and the PPF is bowed out. C) equally productive in all tasks because the slope is negative. D) not equally productive in all tasks because the slope is negative. E) equally productive in all tasks because the production possibilities frontier is bowed out.
Price discrimination occurs when a firm
A) charges customers different prices for different goods. B) is able to sell different units of a good at different prices. C) charges customers the same price for different goods. D) can determine which of the many market equilibrium prices it will charge. E) has a marginal cost curve that is horizontal.